Fitch may cut Sony

Fitch Ratings said it placed Sony Corp.'s A- long-term foreign- and local-currency issuer default ratings and senior unsecured ratings on Rating Watch negative and affirmed its short-term foreign- and local-currency issuer default ratings at F2.

The action was triggered by news of a significant downward revision of its earnings forecast for the fiscal year ending March 2009, Fitch said.

Fitch said it plans to assess the likelihood of Sony being able to restore its competitiveness by developing attractive products for consumers, reducing operating costs and restoring its profitability in a timely manner.

Sony's operating performance is being negatively affected by the global recession and the yen's appreciation, the agency said. There are concerns that Sony is losing competitiveness with its core electronic products, taking into account the magnitude of deterioration in its operating performance, compared to its peers, Fitch said.

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