Standard and Poor's cuts Sony ratingFebruary 8, 2012 - 16:36 AMT PanARMENIAN.Net - Credit rating agency Standard and Poor's lowered rating of Japanese electronics and entertainment giant Sony less than a week after the company announced woeful results, AFP reported. S&P dropped its assessment of the firm's long-term credit worthiness to BBB+ from A-, citing poor earnings, price erosion, falling demand and stiff competition. The agency also said its outlook for Sony's long-term corporate credit rating was negative, based on the "view that severe circumstances in Sony's machinery electronics businesses make a strong recovery in earnings unlikely." The agency also warned that it "could lower the ratings further if we see no meaningful sign of a recovery in Sony's earnings within six to 12 months." Last week, the technology giant more than doubled its full-year net loss forecast to 220 billion yen (USD 2.9 billion), up from 90 billion yen previously, in what will be its fourth consecutive year in the red. It logged a net loss of 201.45 billion yen for the nine months to December, down from a corresponding period profit of 129.22 billion yen a year earlier. Sony blamed difficult trading conditions in developed-country markets, the impact of severe flooding in Thailand, and the high yen as among the causes of the plunging numbers. The firm that made the revolutionary Walkman has lost its edge in recent times, with mobile phones challenging its key games division - which suffered an embarrassing hacking scandal - huge losses in the firm's television business, and piracy threatening its music and film assets. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | The Power of One Dram to benefit Road of Life charity The companies inform that the May beneficiary of The Power of One Dram is the “Road of Life” charitable organization. Ucom General Director gives lecture at French University in Armenia The General Director of Ucom Ralph Yirikian delivered a lecture at the French University of Armenia. Kazakhstan welcomes Yerevan, Baku’s agreement to meet in Almaty Kassym-Jomart Tokayev has welcomed the agreement of Baku and Yerevan to hold negotiations in Almaty. Armenia offers to temporarily host, preserve Gaza manuscripts The Armenian Foreign Minister has said Yerevan is ready to help preserve manuscripts from the conflict zone in Gaza. |