S&P slashes ratings on troubled Pioneer

0 Comments | AFP, December, 2005

TOKYO (AFP) — Standard and Poor's cut the ratings on Pioneer, warning that the troubled Japanese audio-equipment maker may have to restructure further after already agreeing to slash 2,600 jobs.

The rating agency downgraded its long-term corporate credit and senior unsecured debt ratings on Pioneer by one notch to "BBB-", with a negative outlook.

The downgrade reflects a sharp drop in Pioneer's earnings due to a slump in the home electronics business and deterioration in cash flows and capital structure, S&P said in a statement.

Pioneer last week warned it will incur a bigger net loss of 87 billion yen (720 million dollars) for the current year to March 2006, more than triple its previous loss estimate of 24 billion yen.

Pioneer also unveiled a plan...