Moody's lowers Sony credit rating, outlook negative

TOKYO May 27 (Reuters) - Credit rating firm Moody's said on Wednesday it had lowered Japanese electronics firm Sony Corp's (6758.T) long-term credit ratings, with a negative outlook, on slowing growth, price declines and a strong yen.

Moody's downgraded Sony, which has forecast a second straight year of losses in the year to next March, to an A3 rating from A2, saying that the global slowdown may make it difficult for the electronics giant to raise sales and profit margins in its high-end products.

"Major electronics products have been commoditized to a large extent, and there is limited room for technological innovation," it said in a release.

Moody's said it would lower Sony's rating further if profit were to worsen at the maker of Vaio computers, Bravia flat TVs and PlayStation game consoles.

"If Sony cannot raise its adjusted operating profit margin to more than 2 percent over the next few years, or if it cannot keep its debt to capitalization below 50 percent, the rating would be downgraded," it said.

Shares of Sony closed up 0.4 percent at 2,475 yen,against a 1.1 percent rise in Tokyo's electrical machinery index .IELEC.T.

(Reporting by Mayumi Negishi)