Japan’s Sony Corporation has its credit rating cut to junk by Moody’s Investors Service as the tech giant attempts to stabilise falling sales for its consumer electronic products.
The credit ratings agency (CRA) lowered its rating to Ba1, one level below investment grade, from Baa3 and the outlook is stable, Moody’s said in an e-mailed statement. Sony already received a similar rating from Fitch in 2012, while Standard & Poor’s (S&P) has the company on the second-lowest investment grade.
“Sony’s profitability is likely to remain weak and volatile,” Moody’s said in the statement. “We expect the majority of its core consumer electronics businesses – such as TVs, mobile, digital cameras and personal computers – to continue to face significant downward earnings pressure.”
“There are some very good products coming out,” said Maki Hanatate, Moody’s senior credit officer, who cited positive feedback on the group’s Xperia smartphones and QX lens cameras. “But it’s uncertain how long it can maintain its competitiveness with so many other rivals rolling out various products.”
Many analysts expect Sony to lower its full-year profit guidance when it announces earnings on 6 February. Bank of America Merrill Lynch (BofA Merrill), for example, estimates Sony’s annual net profit at 17bn yen (JPY) compared with the corporation’s target of JPY30bn (US$290m).
Today CGI and GTNews have announced the launch of the fifth annual Transaction Banking survey report, which offers which offers critical insight into the corporate-to-bank relationship.
On-Demand Treasury Management Solutions continue to gain increased adoption in the US and EMEA regions.
Treasurers are being expected to do more work with fewer resources than ever before, so it is little wonder that the automation of day-to-day operations was highly discussed on the second day of EuroFinance, the annual treasury event held in Barcelona this week.
Chicago based Treasury Management System (TMS) vendor GTreasury and Sydney based risk and treasury management vendor Visual Risk have joined forces in a strategic alliance to ... read more