Fitch ups Toshiba

Fitch Ratings said it upgraded Toshiba Corp.'s long-term foreign-currency issuer default rating and local-currency issuer default rating to BBB- from BB, along with its short-term foreign-currency and local-currency issuer default ratings to F3 from B.

The upgrade reflects the recent improvement in the company's operating results and credit metrics, as well as its strong global positions in NAND flash memory and nuclear power plant businesses, Fitch said.

Although Toshiba was unable to avoid negative revenue growth for the year ending March 31, the company still managed to post a positive operating profit margin at 1.8%thanks mainly to strong demand for NAND flash memory, the agency said.

Amid such an improved operating environment, the company also was able to significantly reduce its financial leverage, Fitch added.

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