Fitch cuts Sony

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

The outlook remains negative.

Sony's operating performance continues to be negatively affected by the yen's appreciation, decrease in unit sales and price declines as a result of intensified competition brought on by the global recession, Fitch said.

The agency said it believes that with additional borrowing and low profitability, Sony's financial leverage is likely to be sustained above 2.5x for the current and next fiscal year.

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