Standard 038; Poor8217;s downgrades Sony

Samp;P dropped its assessment of the firm's long-term credit worthiness to BBB from A-.

Credit rating agency Standard and Poor8217;s today lowered rating of Japanese electronics and entertainment giant Sony less than a week after the company announced woeful results.

Samp;P dropped its assessment of the firm8217;s long-term credit worthiness to BBB from A-,citing poor earnings,price erosion,falling demand and stiff competition.

The agency also said its outlook for Sony8217;s long-term corporate credit rating was negative,based on the 8220;view that severe circumstances in Sony8217;s machinery electronics businesses make a strong recovery in earnings unlikely.8221;

8220;Sony8217;s TV business has made repeated losses since fiscal 2004,8221; the agency said in a statement.

8220;The company8217;s position in the global market is under strong pressure amid severe competition from Korean manufacturers and emerging Chinese companies.8221;

The agency also warned that it 8220;could lower the ratings further if we see no meaningful sign of a recovery in Sony8217;s earnings within six to 12 months.8221;

Last week,the technology giant more than doubled its full-year net loss forecast to 220 billion yen USD 2.9 billion,up from 90 billion yen previously,in what will be its fourth consecutive year in the red.

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It logged a net loss of 201.45 billion yen for the nine months to December,down from a corresponding period profit of 129.22 billion yen a year earlier.

Sony blamed difficult trading conditions in developed- country markets,the impact of severe flooding in Thailand,and the high yen as among the causes of the plunging numbers.

The figures came as it was announced Welsh-born American Howard Stringer would be stepping aside as chief executive,to be replaced by his 51-year-old protege Kazuo Hirai.

Stringer8217;s years at the helm of what was once a world-beating company were marked by a series of setbacks.

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The firm that made the revolutionary Walkman has lost its edge in recent times,with mobile phones challenging its key games division 8212; which suffered an embarrassing hacking scandal 8212; huge losses in the firm8217;s television business,and piracy threatening its music and film assets.

Standard and Poor8217;s indicated Wednesday some of the blame for the Sony8217;s woes lay at the door of those who had driven its expansion.