Gamasutra: The Art & Business of Making Gamesspacer
View All     RSS
November 29, 2015
arrowPress Releases
November 29, 2015
PR Newswire
View All

If you enjoy reading this site, you might also want to check out these UBM Tech sites:

Notable credit rating agency downgrades Sony to 'junk'
Notable credit rating agency downgrades Sony to 'junk'
November 22, 2012 | By Mike Rose

November 22, 2012 | By Mike Rose
More: Console/PC, Business/Marketing

Notable credit rating agency Fitch Ratings has downgraded Sony to "junk", following various hits to the company's reputation including its seventh consecutive quarterly net loss earlier this month.

Sony posted losses earlier this month, in part due to its declining video game business. Now Fitch has dropped Sony down three notches to BB-, meaning that it no longer classes Sony as an investment-grade company.

"This wasn’t an easy decision," Matt Jamieson, Seoul-based head of corporate research, told the Financial Times (registration required). "But [Sony and Panasonic's] reputations have been hit so much that it'll take a long while to crawl back."

Jamieson notes that a huge part of Sony's problem is its failing TV business, and if the company was to axe the sector, further downgrades may not be necessary in the future.

Damian Thong at Macquarie Securities added, "They do need to convince people that tough restructuring moves will be done in good time, while minimising unnecessary damage to healthy businesses."

Fitch is the first major ratings agency to downgrade Sony this low, although earlier this month the Moody's agency lowered Sony to just one notch above junk.

Related Jobs

The Workshop
The Workshop — Marina del Rey, California, United States

Senior FX Artist
The Workshop
The Workshop — Marina Del Rey, California, United States

Senior 3D Environment Artist
Vicarious Visions / Activision
Vicarious Visions / Activision — Albany, New York, United States

Online Multiplayer Gameplay Engineer
3BLACKDOT — Los Angeles, California, United States

Contract Game Engineer

Loading Comments

loader image