Fitch downgrades Sony, Panasonic ratings to junk

Kyodo

Posted at Nov 22 2012 06:21 PM | Updated as of Nov 26 2012 09:37 PM

TOKYO -  Fitch Ratings said Thursday it has downgraded long-term issuer ratings on Sony Corp. and Panasonic Corp., citing weakness in their core electronics operations.

The rating agency downgraded Sony's rating by three notches to BB-minus from BBB-minus, saying Sony's "meaningful recovery will be slow, given the company's loss of technology leadership in key products, high competition, weak economic conditions in developed markets and the strong yen."

As for Panasonic, Fitch slashed its rating by two notches to BB from BBB-minus, reflecting its "weakened competitiveness in its core businesses, particularly in TVs and panels," it said.

Outlook on their ratings are negative, Fitch said.

==Kyodo