S&P lowers Sony outlook to negative

Standard & Poor's said it revised to negative from stable the outlook on its A- rating on Sony Corp. and its subsidiaries on growing uncertainty over the company's ability to achieve a recovery in the next fiscal year.

At the same time, the agency said it affirmed its A+ counterparty and financial strength ratings on Sony Life Insurance Co. Ltd. and A- counterparty and short-term A-2 ratings on Sony Bank Inc.

The outlooks on the long-term ratings on Sony Life and Sony Bank are stable. The short-term rating on Sony Corp. remains A-2, the agency noted.

According to S&P, Sony lowered its earnings forecast for fiscal 2006, citing costs from recalls of faulty lithium ion batteries, lower pricing of its PlayStation 3 home-video game console, which is to launch in November and lower than forecast unit sales of its PlayStation Portable handheld video game system.

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