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Sony and Panasonic Credit Rating Cut to Junk Status by Fitch

by Roy Choi | November 22, 2012November 22, 2012 9:30 pm PDT

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]

Roy Choi

Roy Choi is a Southern California native. He has been infatuated with technology reviews ever since he bought his first crummy laptop in the summer...