Moody's may cut Sony

Moody's Investors Service said it placed its A2 long-term ratings and Prime-1 short-term ratings of Sony Corp. and its supported subsidiary, Sony Global Treasury Services plc, on review for possible downgrade.

The action follows Sony's downward revision of its performance forecast for 2009 and reflects a concern that weak consumer demand and yen appreciation may continue and hinder the company's profit recovery, Moody's said.

The global financial crisis has caused a significant slowdown in demand for major electronics products, such as flat-panel display TVs, digital still cameras and mobile handsets, Moody's said.

Lower-than-expected demand has led to fierce price competition, the agency said, and financial performance of Sony's electronics business has deteriorated rapidly.

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