The same ratings agency that downgraded the credit of the United States has found major fault with Sony. Standard and Poor’s lowered the electronics giant’s rating to A-, long-term corporate credit and senior unsecured debit ratings being the main reason cited for the downgrade and negative credit watch. The agency predicts the company’s fourth-straight year of fiscal loss, estimating around ¥90 billion (approximately $1.2 billion) lost for the 2011 fiscal year.
“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.” said Standard and Poor’s in a statement,“Taking these factors into consideration, we have concluded that we need to review the prospects for Sony’s operating and financial performance and verify the effects on the rating.”