S&P lowers Toshiba

Standard & Poor's said it lowered Toshiba Corp.'s long-term corporate credit rating to BBB from BBB+ and the senior unsecured ratings of Toshiba, Toshiba America Capital Corp. and Toshiba Capital (Asia) Ltd. to BBB from BBB+. The A-2 short-term and commercial paper program ratings were affirmed.

The outlook is negative.

The agency said the downgrade was based on the rapid decline in earnings from Toshiba's electronic devices segment due to the unfavorable performance of its semiconductor business and the sharp deterioration in Toshiba's capital structure due to significant net losses and increasing debt.

The negative outlook reflects the possibility of a further deterioration in Toshiba's capital structure given that any recovery in the company's electronic devices segment may take a considerable amount of time, S&P said.

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