Ratings agency Moody’s has downgraded Sony’s debt rating from Baa2 to Baa3, leaving the Japanese electronics giant one notch above junk bond status.
According to Reuters, the cut comes after Moody’s downgraded the company’s debt rating during October.
“Without robust restructuring in the coming 12-18 months, Sony’s non-financial services businesses will at best achieve roughly break even, and are also at risk of remaining unprofitable,” Moody’s said in a statement.
In April, the electronics giant announced a major restructuring program called “One Sony”, along with 10,000 job cuts, following a record annual loss of $US 6.4 billion.
The company announced a small operating profit for the third quarter of 2012, compared to a loss during the same quarter last year.