S&P puts Toshiba on watch

S&P said it has placed Toshiba Corp.’s BB+ long-term issuer credit rating on CreditWatch with negative implications.

“The CreditWatch placement with negative implications is based on our pessimistic view of the announcement by Toshiba that it intends to spin off two businesses in the second half of fiscal 2023 (October 2023 to March 2024). Under the plan, Toshiba will split into three companies, spinning off its core infrastructure service and device businesses. The plan calls for the two new companies to be listed. We need to examine the degree to which the spinoffs will weaken the remaining entity's business base, competitiveness, and cash flow generation,” S&P said in a press release.

The agency said it aims to resolve the CreditWatch placement after examining the details and progress of the spinoff plan; this may not occur until the second half of fiscal 2023, after the spin-off is completed.

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