Sony’s credit rating downgraded
Things have gone from bad to worse in 2011 for Sony, they’ve had to contend with making losses all over the place, various online systems being hacked and all of the terrible publicity of the PlayStation Network being hacked as well. To top it off, they’ve made a loss this year and this loss, whilst mostly attributed to other parts of the business outside of the gaming world. Yet, today the ratings company, Standard and Poor’s downgraded Sony’s credit rating.
Standard and Poor’s is an international credit agency that ranks large, multi-national corporations and governments on how safe investor’s money is and how likely a profit is going to be made. The better the rating, the more secure the investment and in turn the cheaper it is to borrow money. Sony has now been downgraded to a A- and a A-2 depending on the length of the loan.
Whilst the A grade is still high, it indicates that there’s little confidence that Sony will return to profit in the next few years. To put this into comparison, the country Greece currently sits at the C rating and C is where the ratings start getting a little dire.