Sony hasn’t been too healthy for quite a while now. The Japanese hardware manufacturer recently posted a loss of $5.7 billion for this last financial year that ended in March 2012. There are numerous theories as to why Sony is on a financial downward spiral, and if you’re interested in some of those theories then I suggest you read this interesting feature over on Kotaku.
A credit ratings agency called Fitch has now taken it upon itself to be the first such credit company to label Sony’s stock as “junk”. In credit financing terms, this now means that Sony’s stock has a rating of BB-minus, and any company with that level or lower is considered to be in danger of defaulting or making very little future financial gains.
According to Fitch, any “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.”