S&P downgrades Toshiba, debt

S&P said it lowered its long-term corporate credit and senior unsecured debt ratings on Toshiba Corp. by one notch to B and BB-, respectively, and removed the ratings from CreditWatch.

The outlook on the long-term corporate credit rating is negative.

The agency placed its long-term ratings on Toshiba on CreditWatch with negative implications in December and maintained the CreditWatch on the long-term ratings when it lowered them in February.

The B short-term corporate credit and commercial paper ratings were affirmed.

For fiscal 2015 (ended March 31), Toshiba made an operating loss of ¥719.1 billion and a net loss of ¥483.2 billion, and its shareholder's equity shrank to ¥312.6 billion (versus ¥1.0839 trillion as of the end of March 31, 2015), S&P said.

The company’s performance took a blow from the massive restructuring costs, asset devaluations, and valuation losses it incurred as a result of intense restructuring of low-profitability and loss-making businesses following revelations last fiscal year of widespread accounting improprieties at the company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.