S&P lowers Panasonic view to negative

S&P said it revised the outlook on Panasonic Corp. to negative from stable.

The agency also said it affirmed the long-term issuer credit rating at A- and short-term rating at A-2.

The outlook revision reflects intensifying competition in the appliance business and a slowing in its businesses targeting China, which are undermining its overall ability to generate earnings, S&P explained.

The company's profitability also is expected to take time to recover, the agency said, because efforts to restructure its low-profitability businesses are likely to require spending, which will weigh on profitability.

But S&P said it still expects the company to maintain a strong franchise in its diverse main businesses and a sound financial position relative to the current ratings.

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