Standard and Poor's downgrades Sony

TOKYO -- Credit ratings agency Standard and Poor's has downgraded Sony one step from an A- to BBB+ credit rating. The move comes days after the company forecast $2.9 billion in net losses for the financial year, its fourth consecutive year in the red. The agency said in a statement that the main reason for the red ink is "Sony's strategy to aggressively expand its global market share despite strong competition, a massive erosion of prices, and its high-cost structure compared with overseas competitors." S&P added that "it will be difficult for Sony to return its TV business to profitability even in fiscal 2013. Therefore, we see a low likelihood of a strong recovery in Sony's earnings in the next two years or so." The agency said it may drop Sony's rating even further if it sees "no meaningful sign of recovery" in the coming six to 12 months. Sony prexy and CEO Howard Stringer has said he is stepping down, after seven years at the top, in April to make way for Kazuo Hirai, who turned around Sony's game biz and has since taken over management of its core electronics division. Hirai is aiming to slash TV biz losses in half in the coming 2012 fiscal year and return to profitability by the end of March 2014, but S&P considers such an outcome unlikely. Contact the Variety newsroom at news@variety.com