TOKYO (AP) — Moody’s Investors Service has lowered its credit ratings for Sony Corp. and Panasonic Corp. one notch each amid pressure on their TV businesses, and said the outlook for both Japanese electronics companies remains weak.
Moody’s said Friday it is concerned that Sony’s earnings will remain weak and volatile due largely to its money-losing TV division, which is being battered by tough competition and falling prices.
Sony’s long-term debt rating was lowered to Baa1 from A3.
Panasonic’s financial strength has deteriorated since it acquired the remaining stakes in Sanyo Electric Co. and Panasonic Electric Works Co., the rating company said. Its debt rating was lowered from A2 from A1.
The rating outlook for both companies was negative.
Copyright 2012 The Associated Press.