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Broadband Briefs for 05/27/09

Wed, 05/27/2009 - 9:00am

Moody's downgrades Sony on slump, competition
By The Associated Press

TOKYO (AP) – Moody's Investors Service lowered its long-term debt rating on Sony Corp. by a notch to A3, citing concerns about slumping electronics demand and intensifying competition. It was the first downgrade for Sony since December 2005, when it earned its A2 rating. On Wednesday, Moody's also gave a "negative" outlook for Sony, meaning the rating could be cut again.

"The global recession has caused a significant slowdown in demand for Sony's major electronics products, such as flat-panel display TVs and digital still-cameras," the U.S. credit rating agency said Wednesday. “These rating actions reflect Moody's concern that slowing growth in demand and intensifying competition in major electronics products, as well as the strong yen, will continue to pressure Sony's profitability.”

The maker of the PlayStation 3 game console and Bravia flat-panel TVs lost 98.9 billion yen ($1 billion) for the fiscal year through March (story here). It is not expecting a quick recovery and is projecting a 120 billion yen ($1.2 billion) loss for the fiscal year through March 2010.

More Broadband Direct 05/27/09:
•  Canoe Ventures beefs up engineering team with McHugh, Huber
•  Cablevision offers businesses 24 phone line option
•  Harmonic gears SK Broadband up for cable IPTV launch
•  Nortel, Camiant powering multimedia services for Kabel BW
•  Telcordia intros home network monitoring
•  JDSU provides proof of Ethernet
•  Sunrise adds DSL triple-play testing
•  Microsoft brings virtualization to IPTV
•  Canby Telcom shifts to EchoStar for HD
•  Rumor: AT&T to carry Android OS phones
•  Broadband Briefs for 05/27/09

 

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