International rating agency Fitch on Thursday downgraded the ratings of Sony Corp., two of Japan's largest electronics and household appliances makers. and Panasonic Corp. The rating was lowered by two steps at once - to a speculative level, reports the Reuters news agency .

Sony's long-term rating was downgraded from BBB- to BB-, and Panasonic's was downgraded from BBB- to BB, with the outlook for both ratings being negative.

The main reason for the downgrade of the rating is the lack of competitiveness of televisions and monitors produced by Japanese companies, the company's low operating profit, unfavorable economic conditions in developed markets and the expensive yen.

A tangible restoration of Sony's position will occur slowly, as the company loses its leadership in the sector, Fitch experts note.

The downgrade of Panasonic's rating, according to agency analysts, reflects the company's "weakening competitiveness in key business segments, in particular, the production of televisions and LCD panels" and the low level of funds generated by its operations. While the company's restructuring and consolidation efforts will gradually improve operating profits, weak performance in its electronics and components division could dampen the positive impact and slow growth.

Share prices of Japanese companies Sony, Panasonic and Sharp fell to their lowest levels in three decades in 2012, reflecting investor sentiment that doubts that Japanese companies can cope with falling demand for their products caused by competition from Korean manufacturers Samsung Electronics Co. and LG Electronics Inc.

Panasonic was founded in 1918 in Osaka (Japan), employing over 330 thousand people.

Sony was founded in 1946 and employs 150,000 people.

Fitch downgrades Sony and Panasonic