Sony's been slapped with a "BB-minus" stock rating by ratings company Fitch, officially labelling the shares as "junk". The rating was given due to high competition, a strong Japanese Yen and the corporation's "loss of technology leadership in key products." Ouch!
The ratings outfit added that a poor economic environment in the domestic market, and increasing strength in competitor products such as those made by Apple and Samsung, means that stock and financial recovery for Sony will not be easy.
"[It] reflects Fitch's belief that meaningful recovery will be slow, given the company's loss of technology leadership in key products, high competition, weak economic conditions in developed markets and the strong yen," the group announced.
Sony's stock has had a rough time lately, with this being the latest in a string of share downgrades. Fitch is the first to formally hand it a rating worthy of "junk" status - referring to companies that have little in the way of short or medium term gains for the future.
With recent quarterly financial results showing a slowdown in the games business, it seems that a lot of work still needs to be done for CEO Kaz Hirai to turn things around.