Moody's downgrades Toyota to Aa1

Moody's Investors Service said it downgraded to Aa1 from Aaa the senior unsecured long-term rating of Toyota Motor Corp. and its supported subsidiaries. The Prime-1 short-term rating remains unchanged.

This concludes the review for possible downgrade that began on Dec. 22, and the outlook is negative.

The agency said the downgrade has been driven by the significantly impaired state of profitability at Toyota, due in turn to the severe nature of market conditions surrounding the global auto industry.

The negative outlook also reflects the increasing challenging nature of these market conditions and Moody's assessment that they could prolong any recovery in profits.

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