Moody’s: Sony view to positive

Moody’s Investors Service said it changed Sony Corp.’s outlook to positive from stable.

Moody’s also said it affirmed Sony’s Ba1 issuer and long-term senior unsecured bond ratings.

Moody’s also said it affirmed the not-prime short-term rating of its supported subsidiary, Sony Global Treasury Services plc.

The outlook revision reflects the company’s efforts in effectively lowering its financial leverage over the past year, Moody’s said, as well as a view that steady progress in the company’s restructuring efforts will help sustain its operating performance over the next 12- to 18-months.

The positive outlook also considers the alleviation of concerns over a potential deterioration in its financial leverage following news that Sony’s recently expanded capital-expenditure program would be funded by new equity offerings, the agency said.

The company’s now lower leverage combined with the benefit of additional equity has provided a more meaningful cushion within its rating to absorb potential volatility in its operating environment and earnings, Moody’s said.

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