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Sony credit rating downgraded to junk by Fitch

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Sony's credit rating has been cut to junk status by Fitch Ratings. Another major ratings agency, Moody's, dropped Sony to one notch above junk earlier this month. Businessweek reports Fitch cited a laundry list of issues for the downgrade, which included Sony's current financial situation.

"The downgrade reflects Fitch's belief that meaningful recovery will be slow, given the company's loss of technology leadership in key products, high competition, weak economic conditions in developed markets and the strong yen," Fitch Ratings noted today.

Boiled down, the junk bond status means it's believed Sony can't recover from its current state without major restructuring. Restructuring the conglomerate has been attempting to do for years.

[atm2003 via Shutterstock]

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