S&P keeps Toshiba on watch

Standard & Poor's said it BBB long-term corporate credit and senior unsecured debt ratings and A-2 short-term rating on Toshiba Corp. remain on Creditwatch with negative implications.

The Creditwatch update follows Toshiba's announcement on May 8 of its earnings forecast for fiscal 2009 as well as the company's plans to enhance its capital through a public stock offering of about ¥300 billion and an issuance of subordinated bonds worth between ¥170 billion and ¥180 billion, which is aimed at strengthening its financial standing, the agency said.

The long-term and short-term corporate credit ratings on Toshiba's overseas subsidiaries also remain on Creditwatch with negative implications, S&P said, adding that the ratings on Toshiba were placed on Creditwatch on April 20, reflecting growing uncertainty over the company's medium-term financial performance and increasing downward pressure on its capital quality.

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