Moody’s Cuts Debt Ratings on TV Producers
Citing concerns about continued losses at their TV divisions, Moody’s cuts the debt ratings on both Sony (NYSE:SNE) and Panasonic (NYSE:PC). Sony’s rating was cut to Baa1 from A3 and Panasonic’s to A2 from A1, with the outlook negative for both.
Amid tough competition and an appreciated yen, Sony will have difficulty in restoring its TV profitability in the next two years. Panasonic’s Introduction of two major subsidiaries in April is blamed for the deterioration of its 2011 financial profile.
Here’s how shares of the stocks reacted to the downgrades:
Sony Corporation (NYSE:SNE): SNE shares recently traded at $17.85, up $0.6, or 3.48%. They have traded in a 52-week range of $16.16 to $36.97. Volume today was 1,654,586 shares versus a 3-month average volume of 1,235,440 shares. The company’s trailing earnings are $-4.66 per share.
Panasonic Corporation (NYSE:PC): PC shares recently traded at $8.45, up $0.13, or 1.56%. They have traded in a 52-week range of $8.00 to $14.11. Volume today was 918,953 shares versus a 3-month average volume of 379,226 shares. The company’s trailing earnings are $-0.81 per share.