Moody's said Sony is facing pressure in the TV and PC markets thanks to "intense global competition, rapid changes in technology, and product obsolescence."
"The rating actions reflect Moody's view that while Sony has made progress in its restructuring and benefits from continued profitability in several of its business segments, it still faces challenges to improve and stabilize its overall profitability and, in the near term, to achieve a profile that Moody's views as consistent with an investment grade rating," Moody's said in a statement.
The firm did note that Sony's Devices, Imaging Products & Solutions, Music, and Pictures segments "are expected to remain profitable." The profitability of those segments is not enough to "support an investment grade rating for the overall corporation," however.
Moody's also expects the games division to improve thanks to the launch of the PlayStation 4. The segment likely won't reach the profitability levels seen in 2010, though, according to Moody's.
TheStreet Ratings team rates SONY CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SONY CORP (SNE) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and growth in earnings per share. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."