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Moody's lowers rating on Sony, Panasonic

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Well, how comes they are wrong most of the time?

Are you talking about a Credit Default Swap? What are you talking about?

-1 ( +0 / -1 )

Godan, I have one Sony TV made 3 years ago (X series - their most high end, luxury line), and I believe it is the best TV ever, by any company. To bad Sony lost it to Korean and Taiwanese competition. Sony has not made a single good TV since...

-1 ( +0 / -1 )

Herefornow

Moody's is well-respected in the world financial community as literally billions of dolars ride on the ratings they give companies' bonds.

Well, how comes they are wrong most of the time?

-1 ( +0 / -1 )

@hereforenow, Japanese do not live in a credit rating society like us, so they do not understand this concepts no matter what we say. So be it. I would not waste my time and breath here. The rest of world would go forward and leave clueless Japanese behind in global economy.

The ratings for Sony and Panasonics downgrades are well analyzed.

-1 ( +0 / -1 )

Yukio -- wishful thinking. But ratings agencies have to do their job based on reality, especially recent trends. And as many other posters have noted, Japan's recent performance has been fairly dismal. How many more "kicks in the ass" do they need? Over 200% debt to GDP ratio! Flat-line economy for over two decades! Shrinking/aging population! But not a single meaningful change -- except those Koizumi pushed through, that then got rolled back! Sorry, but IMO the complacency you mention is way too institutionalized in Japan for any sort of meaningful change to occur in any of our lifetimes.

1 ( +3 / -2 )

Yukio I agree with you, what gives them the authority to lower anything but their ego :P

-1 ( +1 / -2 )

The Japanese are educated and hard working!

Education and hard work will not return Japan to its glory days. The Japanese are among the most inefficient workers in the developed world in terms of productivity per hour. Time is wasted just looking diligent at work. As long as workers here accept a system that rewards seniority and people who simply act busy, instead of basing pay on performance and results, then these companies will not catch up. What has kept them afloat this long is a strong demand (bias) in the domestic market for Japanese-made (designed) products, but as the population declines, that is not going to be the case for much longer. Japanese companies need to retool almost everything, and the schools here need to start encouraging original thinkers who can innovate both in terms of new products and new ways of running a business. I believe Japan has it in them to do this if they choose, but sadly this may never be the case. All I see is a failure to adapt even when it is so obvious that some major change is necessary. Maybe it's pride or ignorance, but something is stonewalling progress here, and it is winning.

1 ( +2 / -1 )

too late, consumers had downgraded the ratings of these companies long ago.

2 ( +3 / -1 )

Sony has fallen hard and can't really fall any harder. Its redeeming areas are its entertainment areas namely video games and film/television departments. Its smartphone and television sectors are bleeding money. Clearly, it will need to create a galaxy caliber phone using the android platform, either exit or reform the television department, and ultimately develop a strong portfolio of games and a sound video game console system with xbox live standard online integration. Sony has good talent, only its intransigence and missteps has caused the company to enter all races totally flatfooted. Panasonic televisions are wonderful, but in this day and age televisions are simply a boasting area where sales and market share is still priority over profitability. It doesn't really matter if you are 1st 2nd or 3rd place in sales, a division which is bleeding money is ultimately a cancer and should be either cured or removed.

0 ( +0 / -0 )

It's somehow true that both companies are getting less competitive in the TV market compared to several years ago because of tough competition agains Korean rivals. Even though the ratings by rating companies are sometime less reliable, we should realize that TV industry is not good market for Japanese key components supplier for TV market including TV set, LCD panel...etc... mainly because of strong yen and advanced marketing strategy of Korean rivals.

0 ( +0 / -0 )

After watching "Inside Job", surely all Sony need to do is give Moody's some money and they will be AAA again ^_^

5 ( +5 / -0 )

Sony lost it's way in the late 1990s and has been playing catch-up ever since. How and why this happened, who knows? But it isn't the Sony of yesteryear that made a Trinitron TV that could be watched daily for hours and work fine for 20 years! Wouldn't be surprised if they are bought out one day.

On the other hand, Panasonic makes a mean TV (got one of their new ones last fall) and having just returned from the States can honestly say few LG, Samsung, or other makers' offerings come close in terms of picture quality. But I paid for it! Americans (still the largest market in the world) simply don't need "perfect" and are willing to sacrifice a few hundred bucks for a less than perfect product from non-Japanese makers. As long as this mentality persists and the economy for the 99% of Americans sucks, then Japanese makers are gonna have serious issues.

Ironically enough, while everyone is focused on the Koreans, Apple looks set to introduce the "iPhone" version of a TV and give them a run for their money.

Anyway, Moody's has made the right call, IMO.

2 ( +5 / -3 )

China? Pfff! Don't make me laugh. You, too! On the back of a stamp! I put one of Moody's ratings printouts on the bottom of my canary's cage and not even he wouldn't poop on it! I trust my canary more that I trust this company of imposters... respected? Yes by you! Are you from Texas? Sony and Panasonic will bounce back, Apple will decline it's a cycle, up and down, up and down! Business is a 15 round boxing match! The Japanese are educated and hard working! They just started to believe all the nonsense in the paper about being unbeatable and unique and started to become complacent. A good couple of kicks in the ass, and the gloves will be back on! As for China..... their house of cards could very well meet a tumble!

-1 ( +8 / -9 )

Ah_so: Restoring their competitiveness in the TV market is not a path to financial security. Even for the successful like Samsung, LG, and Sharp, there are very little profits to be had.

http://www.economist.com/blogs/schumpeter/2012/01/flat-panel-displays-0

0 ( +0 / -0 )

The rating agencies took a hammering because of their inability to rate mortgage debt properly,

They were paid to give good ratings. No inability, just corrupt business practices.

5 ( +6 / -1 )

herefornow: wise words. The rating agencies took a hammering because of their inability to rate mortgage debt properly, but what they are good at doing is rating countries and traditional businesses.

Japanese electronics has been so slow to react to the changing world, missing the non-domestic mobile phone market , the mp3 player and allowing Samsung to steal the TV market from under its noses.

2 ( +4 / -2 )

Someone should lower Moody's rating! They are a bunch of pompous wankers fresh out of college, very similar to the majority of dunces employed by "think tanks" across America!

Yukio -- rubbish. Moody's is well-respected in the world financial community as literally billions of dolars ride on the ratings they give companies' bonds. So no "pompous wankers fresh out of college" are entrusted with that kind of responsibility. But, since you are so expert, why don't you enlighten us on all the positive things you see for either Sony's or Panasonic's earnings over the next few years. You are just P.O.'d because Moody's is simply formally recognizing what others have seen for a year or more -- the decline/hallowing out of Japan is accelerating because many large Japanese firms don't have the flexibilty to respond quickly enough to a global, 21st century market. And their inflexibility will cost them billions as they try to re-structure. Meanwhile, the more nimble companies from SK, and China will be moving even further ahead. Not a pretty picture for Japan Inc.

-1 ( +5 / -6 )

Someone should lower Moody's rating! They are a bunch of pompous wankers fresh out of college, very similar to the majority of dunces employed by "think tanks" across America! Again these think tanks are full of pretentious wannabe's, who if you gave an enema to, could bury in a matchbox! Pff! Moody`s! a group of pimply-faced, Nintendo-carrying NERDS! They are so wrong ALL of the time they should become BROKERS or my financial advisor! Hehehehe! Hahahaha!

2 ( +11 / -9 )

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