Japanese-based consumer electronics companies Sony and Panasonic have not been winning much in anything these days. Creditors and analysts are taking note. ¬†Moody’s downgraded Sony to junk status earlier in the month and Moody’s followed suit. ¬†Fitch justified the ratings on the grounds of a strong yen and the positioning the companies currently find themselves (losing customers in consumer electronics market).

Panasonic is on track to lose $10 billion for a second year. While Sony is on its seventh consecutive quarterly loss. While both companies have large war chests to sustain them for a while longer, eventually these losses could cripple any viable options.

Fitch claims both companies need to make drastic structural changes to pull themselves out of junk bon status.

[Joystiq, Financial Times]