Fitch downgraded Sony “given the company’s loss of technology leadership in key products, high competition, weak economic conditions in developed markets and the strong yen“.
The problem is certainly not the camera business: “Fitch believes that continuing weakness in the home entertainment & sound and mobile products & communications segments will offset the relatively stable music and pictures segments and improvement in the devices segment which makes semiconductors and components.“.
As you know Sony is completely restructuring the company and Fitch writes: “Fitch believes that the strategic initiatives announced in April 2012 to turn around the company’s electronics business are the right approach, but execution is a risk and macro headwinds and intense competition across almost all of Sony’s key products may delay the recovery.”
That will probably bring to a long discussion now if such rating agencies are trustworthy or if Sony is trustworthy. We have to see it globally. It’s a hard time for many companies and many countries. And I am not sure how to decipher what is happening now. In short, I am not worried about Sony, I am more worried about us learning how to come out of a global crisis liek that!