S&P Downgrades Sony Credit outlook negative

[The Sith]

http://www.reuters.com/article/2012/...LA260120120208
With the credit rating being lowered this will scare off potential and future investors. This may affect the Ps4 and future projects.

[mickice]

Time for Kaz to earn his keep.

Only 12 days till I spend close to $700 on a PSVita plus games.

[TGO]

OLD!
thou hasn't been posted here, but for comparison to demonstrate how bad it is
Sony: 2 billion loss
Sharp: 3.8 billion loss
Panasonic: 10 billion loss

As far japanese companies go, it could be worse
thou this is only the TV division
Nintendo was downgraded too, no big deal

[Bligmerk]

So? The S&P has downgraded France, Germany, Greece, Portugal, Spain, Ireland, US and UK banks:

http://www.telegraph.co.uk/finance/n...-US-banks.html
S&P downgrades British and US banks

S&P has been downgrading everybody right and left if they are reporting losses. Theoretically, this should be causing a financial panic because getting investment money should be more difficult for the downgraded institution. The reality is we are still in a global recession over 4 years long now and money to borrow is at virtually 0% (for corporations, banks and governments) but nobody wants to borrow and go deeper into debt, especially if that 0% interest ends up with -20% returns to pay it back. The recession is shifting now, there is enough internal domestic consumption in the US to spend out of a recession. The US has a lot of debt but it has internal wealth that is worth far more than the debt. The same guy that predicted 5 years ago that Facebook would be worth $100 billion at IPO is now saying that Apple will become a $1 Trillion evaluation company. Apple is worth more than the entire country of Greece at this point, in terms of having the collateral for a hypothetical loan. Europe is another situation, so that looks to get worse over the next year. Japan is caught up in that growing whirlpool due to needing to export to survive but the currency so much in demand that it makes export goods too costly to export.

Plus, who are S&P? It was a guy named Standard and a guy named Poors that decided, hey, let's form an accounting consulting company and call it Standard & Poors!!! And now, we allow it to control the course of banks, governments and corporations.

[Sub-stance1]

So? The S&P has downgraded France, Germany, Greece, Portugal, Spain, Ireland, US and UK banks:

http://www.telegraph.co.uk/finance/n...-US-banks.html
S&P downgrades British and US banks

S&P has been downgrading everybody right and left if they are reporting losses. Theoretically, this should be causing a financial panic because getting investment money should be more difficult for the downgraded institution. The reality is we are still in a global recession over 4 years long now and money to borrow is at virtually 0% (for corporations, banks and governments) but nobody wants to borrow and go deeper into debt, especially if that 0% interest ends up with -20% returns to pay it back. The recession is shifting now, there is enough internal domestic consumption in the US to spend out of a recession. The US has a lot of debt but it has internal wealth that is worth far more than the debt. The same guy that predicted 5 years ago that Facebook would be worth $100 billion at IPO is now saying that Apple will become a $1 Trillion evaluation company. Apple is worth more than the entire country of Greece at this point, in terms of having the collateral for a hypothetical loan. Europe is another situation, so that looks to get worse over the next year. Japan is caught up in that growing whirlpool due to needing to export to survive but the currency so much in demand that it makes export goods too costly to export.

Plus, who are S&P? It was a guy named Standard and a guy named Poors that decided, hey, let's form an accounting consulting company and call it Standard & Poors!!! And now, we allow it to control the course of banks, governments and corporations.

So are you saying that Sony being downgraded and losing billions isn't really a big deal?

[AaronSOLDIER]

Compared to other Japanese companies, no.

[Bligmerk]

So are you saying that Sony being downgraded and losing billions isn't really a big deal?

If the purposeful effort is made to single it out from every other bit of major financial downgrade, then it is a big deal.

But with respect to other corporate financial loss news, no, its not.

Hitachi and Toshiba had multi-billion dollar loss years a few years ago and now, they are reporting substantial profits. Even GM, which a few years ago had a debt of 35 billion, went bankrupt, repaid the government loan ahead of time, is now projecting a record $10 billion profit year. These turn-around stories happen all the time in real life, it is just the lookyloo eyes only zoom in while the news is bad, and have lost their short attention span by the time these corporations not only turn financial situations around but go on to record profits. Some never do turn around, like Xerox, Kodak, Polaroid, Chrysler, RCA, American Motors, and the thousands of other American corporations that have completely failed.

[mynd]

I'm unsure how this will affect anything.
Im not saying it wont, I just have no clue.

The outlook on the long-term corporate credit rating on Sony is negative, reflecting our view that we could lower the ratings further if we see no meaningful sign of a recovery in earnings within six to 12 months.

Jesus, way to put pressure on Kazz.

[Lazarus2376]

I think it was John Stewart who said it..but why should we take advice from a company who's name means....average and below average.

[daLa]

This raises some concern for sure, but hopefully it's something to catch their attention and do whatever they have to do to raise to numbers and don't let Sony die. I don't want a future with no PS4.

[TGO]

Compared to other Japanese companies, no.

This*

Sony is one of if not the largest companies in japan, & one of the largest in the world.
their losses are nothing compared to other smaller companies, and those smaller companies aren't going anywhere or stopping production of anything, So think Sony would? it retarded
especially when they're see buying shit for billions.
And Sony got downgraded to BBB+, it's a past, Nintendo is only two grades higher & we all know they don't have losses..

[mynd]

This*

Sony is one of if not the largest companies in japan, & one of the largest in the world.
their losses are nothing compared to other smaller companies, and those smaller companies aren't going anywhere or stopping production of anything, So think Sony would? it retarded
especially when they're see buying shit for billions.
And Sony got downgraded to BBB+, it's a past, Nintendo is only two grades higher & we all know they don't have losses..

Sony isnt one of the largest companies in the world anymore, not based on their worth anyway ,they went from being worth 100 billion in 2000 to 18 billion now.

They arent even in the top 10 companies in Japan.
http://blog.btrax.com/en/2010/11/14/...-in-the-world/
Although I'd argue they probaly are no 10.

Sony, worth $100 billion in September 2000, is now valued at $18 billion, compared with Cupertino, California-based Apple at $425 billion.

But you are right they arent about to suddenly just fold.

[Sub-stance1]

If the purposeful effort is made to single it out from every other bit of major financial downgrade, then it is a big deal.

But with respect to other corporate financial loss news, no, its not.

Hitachi and Toshiba had multi-billion dollar loss years a few years ago and now, they are reporting substantial profits. Even GM, which a few years ago had a debt of 35 billion, went bankrupt, repaid the government loan ahead of time, is now projecting a record $10 billion profit year. These turn-around stories happen all the time in real life, it is just the lookyloo eyes only zoom in while the news is bad, and have lost their short attention span by the time these corporations not only turn financial situations around but go on to record profits. Some never do turn around, like Xerox, Kodak, Polaroid, Chrysler, RCA, American Motors, and the thousands of other American corporations that have completely failed.

I don't think anyone expects them to fold but billions of dollars of losses is a huge deal. Sony isn't nearly as cash rich as they used to be. These losses will most likely affect every division. It won't be easy and things will probably get worse before they get better but Kaz will most likely bring them back up. Anyone can see that things aren't all roses over there right now. You don't replace a president because things are going great.

[Bligmerk]

A lot of Americans and Europeans try to understand the Japanese business system from the Western view. Also, common financial laws in the west are not the same in Japan.

One example is no taxation on cash reserves and their reporting requirements are not as binding as the western economies, so Japanese corporations have been hoarding cash for several decades now. The problem with cash is that it just sits there in a lump and doesn't really do anything.

Japan holds almost $2 Trillion of US debt invested in US Treasury bonds, which is still earning interest at 2% compared to Japanese savings account interest which is near zero. During the 80's, those debt bonds were earning 15%, where Japanese corporations were parking their cash reserves. This is from last year but the workings behind the curtains have been going on:

http://www.bloomberg.com/news/2011-0...-real-m-a.html
Sony Leads Japan Inc. Eyeing Deals With $2.4 Trillion: Real M&A

[FinfordHenn]

Compared to other Japanese companies