S&P downgrades Toshiba

S&P said it lowered the rating on Toshiba Corp.'s senior unsecured bonds one notch to CC from CCC-.

The CCC- and C issuer credit ratings on Toshiba also are currently on CreditWatch with negative implications.

S&P said it maintained the CreditWatch status with negative implications on the issue rating on the bonds.

The agency said it equalized its rating on Toshiba's senior unsecured debt with the long-term corporate credit ratings on the company since March 17, 2017.

But, now S&P said it assigned a rating on Toshiba's senior unsecured debt that is one notch lower than the long-term corporate credit ratings.

This is based on an estimate that priority liabilities, including secured debt, account for more than 30% of Toshiba's adjusted total assets based on the company's publicly available financial statements, the agency said.

In turn, S&P said it incorporates one notch of uplift in the senior unsecured debt rating to reflect an expectation of support from lender financial institutions.

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