Rating Agency Fitch downgraded the Debt Rating of Sony Corp. and Panasonic Corp.

Fitch, the rating agency in 3rd week of November 2012 downgraded the debt rating of Japan’s Sony Corp and Panasonic Corp to Junk status. The ranking of the two corporations were downgraded because of the weakness measured in their TV Operations and Consumer Electronics and the low demand that these brands suffered due to the tough competition faced by the competing brands Apple Inc. and Samsung.

Sony Corp. and Panasonic Corp. together suffered a major loss of 20 billion dollar in 2011 due to which both the firms managed to cut jobs, sold their assets and closed many facilities round the globe. The recent protests in China against Japan and the Japanese products also was a reason for this lack in demand.

Sony was downgraded from BBB- minus to BB- minus, which was degradation of three notches from its previous position, by Fitch. Whereas, Panasonic was downgraded from BBB-minus to BB status, that was two notches below the previous ranking.

Rating from Other Agencies

The other two rating agencies, the Moody's Investors Service has rated both these electronic majors in the status of Baa3, this is the lowest of the high-grade category and the Standard & Poor's has rated both the electronic making companies at BBB status, which is the-second lowest of the investment grade. The ranked status would diminish the shine of the world-acknowledged Japanese Brand.