Sony's debt rating cut by Moody's on weak profitability
TOKYO, Oct 12 (Reuters) - Sony Corp's long-term debt rating was lowered one notch by Moody's Investor Service to the second-lowest investment grade because of weak profitability in products ranging from televisions to mobile phones.
The downgrade to Baa2 follows a similar cut to Sony's credit standing by Standard & Poor's last month. The lower ratings mean Sony will have to pay more to investors when borrowing money through bond issues.
Moody's threatened a further cut unless Sony's performance improved.
"If a significant improvement in the company's financial profile is not evident in a relatively short time, its ratings will be reviewed for further downgrade," the rating agency said in a report.
In the past three months Sony has spent $1.8 billion to buy companies ranging from medical equipment to cloud gaming. . Rather than borrow to fund the acquisitions, the company instead sold assets, including a chemicals business.
Sony will report its earnings for the three months Sept 30 on Nov 1.
(Reporting by Tim Kelly; Editing by Richard Pullin)
Keywords: SONY MOODY/RATING