Sony Debt Riskier Than Tepco on Looming Downgrade: Japan Credit
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Sony Corp.’s bond risk climbed above that of a power company embroiled in the worst nuclear crisis since Chernobyl before earnings results this week that may trigger a ratings cut for the ailing electronics giant.
The cost to insure Sony’s debt against non-payment rose 42 basis points this year to as high as 182 basis points last week, exceeding that of Tokyo Electric Power Co. for the first time since November 2012, CMA data show. The Markit iTraxx Japan credit-default swap index declined 2.5 to 65 since Dec. 31, while the measure for U.S. companies fell 2.9.