Is Sony Destined For Junk Status?

Sony Corporation (NYSE: SNE) had its credit rating lowered by Standard & Poor's on Wednesday, with the credit rating agency citing Sony's weak profit outlook. The credit rating agency lowered Sony's rating one notch from A- down to BBB+, with a negative outlook. Sony, which was once one of the world's most respected companies, is now flirting with junk status.Just last week Sony warned that it was likely to report bigger losses than it had previously forecast. Sony has struggled to turn around its unprofitable television business because competition in the sector is strong and profit margins are weak. The company has also had to deal with production problems stemming from a number of natural disasters, including last year's earthquake and tsunami in Japan and the floods in Thailand.The company's bottom line has also been hurt by a strong yen that has reduced Sony's profit margins. Although Japan's Finance Ministry said on Tuesday that it had conducted stealth currency interventions last year to cool the ...

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