Moody's may cut Panasonic

Moody's Investors Service said it will continue its review of the Aa2 long-term debt ratings and the proposed Aa2 domestic shelf registration rating for Panasonic Corp. for possible downgrade. The prime-1 short-term rating of Panasonic's supported subsidiary, Panasonic Finance (America) Inc., is not affected.

In Dec., Panasonic and Sanyo Electric Co., Ltd. entered into a capital and business alliance with Panasonic acquiring a majority stake in Sanyo via a public tender offer bid. Sanyo will thereby become a consolidated subsidiary of Panasonic.

Before Panasonic commences the bid, it is seeking the required government approvals under domestic and overseas competition laws and regulations.

Moody's said it will conclude its review once this process is completed and the potential impact of the acquisition on Panasonic's business and financial profiles become clear.

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