SONY rating cut again by S&P. *Update: Moodys follow suit.

[the2real4mafol]

Soundwave said:

the2real4mafol said:
They are just credit rating companies, what's the big deal?

 

It means that Sony is going to have pay interest on all their debt (which is considerable) and that they can't borrow money as easily to do things like try and money-match Microsoft on marketing/exclusives (if say MS decides to start bidding wars for certain titles for example).

It also scares away investors, no one likes to invest in companies with a bad credit rating. Probably will force Sony to not take hardware losses (or too heavy at least) as well.

I know sony didn't keep control of their money very well, but it's not fair on them as it really gives the competetion an advantage. And investment is what sony needs to better it's self, a bit like Greece