Credit rating agency, Fitch Ratings, has downgraded Sony’s stock to "junk."
Sony reported financial losses for seven consecutive quarters now. The company’s failing TV business is to blame for most of the losses which couldn’t be offset by the declining videogame business revenues.
Fitch Ratings now ranks Sony stock as BB-, which means that it is not investment worthy. "This wasn’t an easy decision," Matt Jamieson, Fitch Ratings head of corporate research, told the Financial Times. "But [Sony and Panasonic's] reputations have been hit so much that it'll take a long while to crawl back."
"They do need to convince people that tough restructuring moves will be done in good time, while minimising unnecessary damage to healthy businesses," Damian Thong at Macquarie Securities added.
