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Fitch cuts Sony and Panasonic ratings

  • Sony and Panasonic had their credit ratings cut to the level of junk status for the first time on Thursday.

    Fitch ratings agency made the decision on the back of the firms’ weak balance sheets and diminishing presence in the electronics sector.

    Fitch cut Sony's rating by three notches to BB- and Panasonic's by two notches to BB.

    The rating means that it believes both firms will default on their debt.

    As a result, Sony and Panasonic will now have to pay much more to borrow.

    Earlier this month, Fitch cut rival electronics company Sharp's rating to junk.