Things just got a bit worse for embattled Japanese consumer electronics giants Sony and Panasonic.

Credit rating agency Fitch has slashed their credit rating to junk grade. It is the last thing Sony and Panasonic need at the moment, as both outfits are struggling to turn around their business.

Fitch believes Sony’s eventual recovery will be slow. “Given the company's loss of technology leadership in key products, high competition, weak economic conditions in developed markets and the strong yen," it said.

Panasonic’s downgrade was caused by “weak competitiveness” in TVs and other core businesses. Fitch does not Panasonic’s fortunes will turn around anytime soon.

Earlier this year Fitch slashed Sharp’s credit rating to junk status as well.

More here.