New Delhi: Ratings agency Fitch has downgraded the debt ratings of Sony Corp and Panasonic Corp to "junk" status citing weakness in their consumer electronics and TV operations, a news wire reported.
Fitch downgraded Sony by three notches to BB-minus from BBB- minus, saying meaningful recovery will be slow. The move came after Sony, the maker of PlayStation game consoles and Vaio laptops, last week announced plans to raise 150 billion yen through the sale of convertible bonds.
Fitch cut Panasonic to BB from BBB-minus, a two-notch downgrade, citing weakened competitiveness in its TVs and display panels as well as weak cash generation from its operations. It has a negative outlook on both the companies.
With Agency Inputs