Sony downgraded to BBB- by Fitch

[Acevil]

Kynes said:

gamelover2000 said:

Squilliam said:
So now they are at risk of being downgraded to junk status. I don't understand why they cut the price of the PS3 in the context of such losses.

Because the major losses are not related to the PS3.

 

Neither is BBB a junk status.. it's nothing to be proud of but nowadays credit ratings mean very little.. they were never really relevant for anything but countries

If they wouldn't have lost so much money at the first years of the PS3 existence, they would have much less debt now. The problem aren't the losses per se, the problem is the great debt and rising financial costs. Regarding your BBB comment, I'm sure that Sony board of directors don't think the same. Most funds request A or better status to buy your bonds.

Not only that, if sony keeps getting downgraded, if anyone is willing to invest, it would be at much higher interest rate level, due to the increase of the risk to default.