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Sanyo’s Long-Term Corporate Credit Rating Downgraded

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November 2, 2005 -* Standard and Poor’s Rating Service downgraded Sanyo’s credit rating to BBB- from BBB, and said that it could be further downgraded if Sanyo fails to turn things around.

Sanyo, a Japanese consumer electronics maker, is mostly suffering due to falling prices of appliances. Their restructuring plan, which called for 14,000 eventual job cuts, will be accelerated so that 2/3 of those jobs will be gone by January. Sanyo is also planning to stop selling VCRs and traditional DVD players; it will focus on more next-generation DVD players, rear-projection televisions, and traditional cathode-ray tube televisions.

Sanyo CEO Tomoyo Nonaka has also recently announced a new business plan that shifts the company’s focus to eco-friendly technology, but how this priority will mesh with the restructuring plan is as yet unclear.

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