Fitch cuts Sony

Fitch Ratings said it downgraded Sony Corp.'s long-term foreign- and local-currency issuer default ratings to BBB+ from A-.

The company's senior unsecured debt rating was likewise downgraded to BBB+ from A-, and the agency affirmed Sony's F2 short-term foreign- and local-currency ratings.

The outlook is negative.

The ratings and outlook reflect Fitch's expectation that Sony's financial profile will continue to weaken in the next one to two years.

Fitch said it expects Sony would need a longer time to restore its underperforming electronics operations, while its game segment will likely incur large losses over the next three to five years given the huge investments and intensifying market competition. Sony has also been showing weaker financial results and credit metrics compared to its rivals in recent years, Fitch added.

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