Fitch cuts Panasonic

Fitch Ratings said it downgraded Panasonic Corp.'s long-term foreign- and local-currency issuer default ratings to BBB from BBB+, short-term foreign- and local-currency issuer default rating to F3 from F2 and local-currency senior unsecured notes to BBB from BBB+.

The downgrades reflect the material deterioration in Panasonic's financial profile, especially in terms of financial leverage, mainly owing to the acquisition of Sanyo Electric Co., Ltd. and lower cash flow generation, Fitch said.

The company's credit profile is not likely to show a material improvement over the next 12 to 18 months as the operational environment will continue to be unfavorable, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.