Sony’s debt rating one notch above junk

The downgrade to Baa3 from Baa2 follows a one-notch cut by Moody’s in October, which also said its outlook on the firm remained negative. Another cut would lower its rating to junk, forcing some funds to offload its debt and curtailing the company’s ability to raise money in credit markets.

It’s really sad. They were once such a powerful company with great products.

  • The Sony story serves as a great contrast to that of Apple’s. Two companies with strong design talents and technological prowress, but where Apple eventually became renowned for thair razor sharp product line focus, Sony continually tried to make all things for all people.

    Apple are now the richest company in the world, and Sony is having their debt rating lowered to just above junk.

    Clearly there’s a lesson to be learned here.

    • DMX

      Well, SJ talked about how Japanese company don’t really know how to do software, so true. In the old days when they were beating Intel at ram memory and Intel had to start the CPU business. It seems they haven’t learned.

  • This will be Apple in 10 years.

    • Chronos

      Ha! 10 years ago people said Sony would buy Apple.

      • DanPierce

        It has been said that Sony could have created the iTunes store/ iPod ecosystem before Apple. Why didn’t they? Because their content division fought with their consumer product division and hamstrung them. Look at the Sony NW-MS7 for an example.

    • These things can go in cycles, but I don’t yet see evidence that Apple is heading down this path.

      I also suspect it would take much longer than 10 years to burn off their cash reserves before they even need to worry about their bond rating.

    • More like, this was Apple ten years ago.

      • And it will be Apple again without Steve Jobs guidance. There are already some early warning signs of what the loss of his attention to detail will amount to in the future.

        • It’s far too soon to tell that. For all we know, it was Steve’s guidance over his last few years at Apple that was causing problems. It’s anybody’s guess at this point.

          Things will no doubt be different at Apple the further we move away from Steve’s influence. Whether that will be a a good or a bad thing remains to be seen.

  • they still have (some) great products. their camera line is second to none. too bad they decided to buy some hollywood swill and choked on it.