SONY downgraded again to Junk by Moody's (outlook stable).

[Anfebious]

SamuelRSmith said:

Anfebious said:
Sorry for my infinite ignorance but what does this mean? What happens if your company has the "junk" status?

It refers to a rating of their debts. At junk status, the ratings agencies are basically saying that there's pratically zero chance that Sony will be able to pay back their debts.... so don't buy any Sony debt.

If Sony cannot sell debt (ie, bonds), then that means that they'll struggle to continue running at a loss (where revenue is less than cost), or to make major one-time investments without generating liquidity (getting cash) by selling assets (like when they sold their big buildings last year)

Thanks for clarifying this for me! I'll have to look up some terms you used though, I'm a newbie at these kind of things.