Sony's Credit Rating Falls to "Junk"
Posted on Monday, January 27 @ 11:15:23 Eastern by Nicholas Tan
Moody's Investors Service has dropped Sony's rating to "junk" status, or from Baa3 to Ba1 which is one level below investment grade. While Standard & Poor rates Sony at two notches higher than junk, it matches the junk rating by Fitch. As a consequence, it will be more difficult for the company to borrow money.
Moody explains that while Sony has cut staff and made leaps and bounds in its gaming division, it believes that Sony will continue to struggle in the coming years due to its other business segments:
The only piece of good news is that Moody's believes that the outlook for Sony is still "stable," due in part to the holiday success of the PlayStation 4, selling over four million units as stated from Sony announcement at CEX 2014.
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