Moody's lowers credit rating of Sony on profitability, cash flow
October 13, 2012, 12:06 am TWN
TOKYO -- Moody's on Friday downgraded Japanese electronics titan Sony, citing the company's “weak profitability and cash flow.”
The agency lowered its assessment on debt issued by Sony from Baa1 to Baa2, citing “its challenges in achieving profitability in the TV and mobile phone segments, and the erosion in its global competitive position across different product lines.”
Sony, the once-world-beating maker of the Walkman, lost a whopping 456.66 billion yen (US$5.83 billion) in the year to March, its fourth consecutive annual loss. It also reported a widening loss in the first quarter and cut a profit forecast for the year.