Bad things can happen to good companies as well. This week, Moody’s Investors Service has lowered its credit ratings for Sony Corp. and Panasonic Corp. because of pressure on their TV business. It also stated that the outlook for both companies remains very weak. Moody is pretty apprehensive about Sony’s revenue which is expected to remain relatively minor and volatile because of the increased loses caused by the TV division.
Sony hasn’t been doing well at all in this sector, since it encountered a lot of competition and accessible prices it could not beat. Unless Sony doesn’t see a financial improvement soon, it is very likely that the ratings received will be reviewed further along for action, Moody announced.
On the other hand, Panasonic’s finances have been becoming obsolete since the company acquired the stakes of Sanyo Electric Co. and Panasonic Electric Works Co. Therefore its debt was lowered from A1 to A2. Panasonic’s debt rose to about 550 billion yen from 100 billion yen the previous year.
This news brings into actuality the fact that the television industry is highly deteriorating and needs to change, in order to survive. Apple has been planning just that with the help of the visionary ideas Steve Jobs let behind and maybe other companies should do the same, and rethink the old strategies to fit the new millennium.