Sony's Credit Rating Now Downgraded by Moody's to One Step Above Junk
Oh how the mighty fall sometimes. Sony was once one of the most untouchable, powerful and profitable companies on the planet. Now, they are struggling to survive. Moody's, the credit rating agency, just announced they are downgrading Sony's credit rating to "one step above junk." They also added,
To put it in perspective how bad things are for Sony, just this year they had to combine forces with their competitors, Toshiba and Hitachi just to be able to create competitive LCD TV products. They have been getting hammered by better technology from Samsung and LG. Sony TVs were once the "de facto standard" for reference designs, yet now Sony's R&D is so behind they have to form alliances with their rivals. Do any of you guys remember the old CRT Sony Trinitron TVs? I remember having one that was over twenty years old and it still had a perfect picture.
“Without robust restructuring in the coming 12-18 months, Sony’s non-financial services businesses will at best achieve roughly break even, and are also at risk of remaining unprofitable.”
Sony's fairly new (seven months in the position) CEO, Kazuo Hirai, is now focusing the company's resources on digital imaging, gaming, and mobile. Will he be able to turn the company around? Only time will tell.