Credit rating agency Standard and Poor's has lowered its rating of Japanese electronics and entertainment giant Sony after the company announced poor results last week.
S&P dropped its assessment of the company's long-term creditworthiness to BBB+ from A-, citing poor earnings, price erosion, falling demand and stiff competition.
The agency also said its outlook for Sony's long-term corporate credit rating was negative, based on the "view that severe circumstances in Sony's machinery electronics businesses make a strong recovery in earnings unlikely".
S&P also said that Sony's TV business had made repeated losses since fiscal 2004.
"The company's position in the global market is under strong pressure amid severe competition from Korean manufacturers and emerging Chinese companies," it said.
The agency also warned that it could lower the ratings further "if we see no meaningful sign of a recovery in Sony's earnings within six to 12 months".
