Sony have said that will raise $2.8 Billion dollars billion via a bond issue to repay short-term debt.The move comes as the Company struggles under a mountain of losses and falling sales. At the same time ratings agency Moody has downgraded Sony and is forecasting a negative outlook for the Company.
Accordintg to the Wall Street Journal the Japanese group which is expecting another year of losses amid weak demand for electronics products, will use the cash to payout immediate debt obligations.
Moody’s Investors Service, which assigned an A3 rating with a negative outlook to Sony’s straight bond issuance, noted its concern that the difficult market conditions for Sony’s major electronics products may persist, partly offsetting the effect of the company’s cost-cutting measures.
Sony, which lost over $2B on a net basis in the year ended March 2009, expects a further $2B loss in the current fiscal year amid the weak outlook for its consumer electronics business.
The company plans to spend billions on restructuring and is now working on plans that includes shutting down plants, cutting jobs and moving the manufacture of Sony “Made In Japan” products to third party manufacturers in China, Taiwan and other foreign Countries.