For the second time, Sony’s stocks have once again been deemed “junk”. This first occurred back in November 2012 when FitchRatings moved Sony’s rating from BBB- to BB-. Now, history has repeated itself and Moody’s Investors Service has also downgraded Sony’s bond rating to “junk”, with the rating being reduced from Baa3 to Ba1, which is one level below investment grade.
“While Sony has made progress in its restructuring and benefits from continued profitability in several of its business segments, it still faces challenges to improve and stabilize its overall profitability and, in the near term, to achieve a profile that Moody’s views as consistent with an investment grade rating.”
Now stocks and ratings fluctuate all the time, but it’s definitely not a good sign to see investors and companies consistently rate Sony so poorly, especially over a whole year later. Back when Fitch made the initial report back in 2012, they ended the report with an optimistic outlook on the company stating that they expect to see a slow recovery, but it seems that that slow recovery has yet to start.
It’s important to note that this is not doom-and-gloom, and anyone who has followed my work here knows that I’ve been very optimistic about Sony’s future and I stand by my convictions. They’ll be A-Okay. Reports such as this are just indicative of their current struggles they must overcome.
Let us know what you think down below.by