JAPAN: S&P REMOVES SONY, UNITS FROM NEGATIVE CREDITWATCH.

Date: Dec 13, 1994

TOKYO, Dec 13 (Reuter) - Standard & Poor's Corp said it affirmed its ratings of Sony Corp and three Sony units and had removed their ratings from negative CreditWatch.

S&P placed the ratings on CreditWatch with negative implications on November 17 after Sony announced a 265 billion yen write-off of goodwill associated with the 1989 acquisition of Columbia Pictures Entertainment Inc, now Sony Pictures Entertainment Inc.

The three units affected are Sony Euro-Finance B.V., Sony Pictures Entertainment and Sony Capital Corp.

The affirmations assume the absence of additional costly restructuring measures at the picture business, and that its management steps will be sufficient to stem further significant losses, the rating agency said.

The existing ratings already recognise the excessive value of the picture unit on Sony's balance sheet, S&P added.

The following ratings were affirmed:

Sony Corp

senior debt A

short-term debt A1

Sony Capital Corp

Sony Euro-Finance B.V.

senior debt A

medium-term notes A

commercial paper A1

Sony Pictures Entertainment Inc

subordinated debt A-

Sony shares closed up 20 yen at 5,400 yen. Dealers said the S&P news, which broke just before the market closed at 0600 GMT, had gone largely unnoticed.

(c) Reuters Limited 1994. All rights reserved.