Feeds

Don't touch Sony, Panasonic's junk, says credit agency

Pana may grope its way out of misery, though

Next gen security for virtualised datacentres

Panasonic has a better chance than Sony of surviving the global disinterest in new consumer electronics, credit rating agency Fitch said today.

Fitch downgraded the two debt-saddled firms to junk status: Panasonic's credit rating was pushed down two ranks to double-B, and Sony was nudged down three to double-B-minus. Panasonic is still ahead of Sony, meaning Fitch reckons it has a better chance of being able to pay its debts that Sony does.

"[Panasonic] has the advantage of a relatively stable consumer appliance business that is still generating positive margins," Matt Jamieson, Fitch's head of Asia-Pacific, told Reuters. "Most of [Sony's] electronic businesses are loss making, they appear to be overstretched."

When a company reaches junk level, it will find it almost impossible to raise money for its business, which can push it over the edge.

All of Japan's major electronic firms are suffering, as folks around the world put off buying new tellies and other big ticket items, while the strong yen eats into their profits and competitors in South Korea get ahead of them.

Sharp has already bagged a 30bn yen (£236m) bailout from banks, while Panasonic has persuaded lenders to part with 600bn yen (£4.7bn).

Most of the firms are also engaged in restructuring: they're trying to find pieces of their business that can survive the downturn and concentrate on that. Panasonic is focussing on appliances, solar panels, lithium batteries and automotive components, while Sony is staying with gadgets, cameras and gaming.

Both companies have also found a way to ride out the year; Panasonic with its bank bailout, and Sony with a full-year profit of $1.63bn after selling its chemicals business to a Japanese state bank and raising $1.9bn through convertible bonds it managed to get out before the ratings downgrade. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Twitter: La la la, we have not heard of any NUDE JLaw, Upton SELFIES
If there are any on our site it is not our fault as we are not a PUBLISHER
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.