Increased global competition in its core electronics business prompts the first downgrade in over a decade.
Today, the globes preeminent provider of credit rating and risk analysis, Standard & Poors, downgraded Sonys credit rating from A+ to A. While often considered one of the more arcane aspects of a business enterprise, a companys credit rating has monumental impact on its borrowing power and subsequent ability to secure loans at favorable interest rates.
Osamu Kobayashi, the S&P analyst who outlined the rating change, said, "The downgrade and negative outlook primarily reflect Sonys profitability, which has been strained from product and price competition, especially in its core electronics business, where there is still uncertainty regarding sustainable improvement in Sonys earnings-generating ability."
News source: GameSpot