Credit agency Fitch has downgraded its views of both Sony and Panasonic, dropping the two tech giants to “junk” status. Which is business speak for “don’t buy shares in these two as they could go broke.”
The downgrade note claims the two companies have suffered such severe damage to their reputations of late that it’ll be hard for them to return to their former glories, with Sony’s particular problem being its continuing difficulties in convincing people to buy Sony TVs in the face of astonishingly aggressive competition from the likes of Samsung and LG.
Fitch doesn’t believe Sony will be forced out of business by its bankers, though. It has other money-making divisions, so could still turn things around before the bailiffs turn up to confiscate the boardroom chairs.
And the use of the word “junk” doesn’t mean either firm is worthless just yet. It’s a technical term meaning it’s considered a risky investment that some clients ought to avoid. [Techradar]