S&P cuts Sony to A-

Standard & Poor's said it lowered its corporate credit ratings on Sony Corp. to A-/A-2 from A/A-1.

Along with Sony Corp.'s corporate credit rating, the ratings lowered include Sony Capital Corp.'s corporate credit rating to A-/stable/A-2 from A/watch neg/A-1 and Sony Global Treasury Services plc's corporate credit rating to A-/stable/A-2 from A/watch neg/A-1.

The outlook on the A- long-term rating is stable.

S&P also said it affirmed its A+ counterparty and financial strength ratings on Sony Life Insurance Co. Ltd. and A- counterparty rating on Sony Bank Inc.

The outlooks on the long-term ratings are stable.

S&P said Sony's profitability and cash flow are likely to fall substantially in fiscal 2005 due to weak performance and business restructuring costs.

But whether the company can achieve a recovery in profitability and cash flow as outlined in its management plan are not clear, S&P said.

The ratings could come under pressure if the credit quality of Sony further deteriorates, S&P said.

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