Sony Has Its Credit Rating Downgraded

By Darryl Kaye on November 8, 2011, 5:15AM EST

Following a string of problems this year both financially and otherwise, credit ratings agency Standard & Poor has downgraded the credit rating of Sony to an A-.

The group said in a statement that this year's issues suggest that there is a higher probability of Sony turning around weak earnings in the future: "There are no signs of a halt to the deterioration in the earnings of the company's core flat panel TV business. In addition, Sony's financial burden is likely to increase in tandem with the company's making Sony Ericsson a wholly owned subsidiary."

Sony suffered from the huge Earthquake that rocked Japan earlier in the year, then had to deal with a huge breach to the PlayStation Network and their other online services. The company was also dealing with issues regarding the PlayStation 3 being hacked.

Source: Develop

blog comments powered by Disqus