S&P downgrades Toshiba

S&P said it lowered the long-term corporate credit rating on Toshiba Corp. to CCC+ and short-term corporate credit and commercial-paper program ratings on the company to C, all by one notch.

All of the ratings remain on CreditWatch with negative implications, the agency said.

S&P also said it lowered the senior unsecured debt rating on Toshiba two notches to B- from B+ and kept the rating on CreditWatch negative.

On Dec. 28, the agency placed the long- and short-term ratings on Toshiba on CreditWatch with negative implications at the same time as lowering the long-term ratings.

These actions were in response to news that Toshiba might recognize several ¥100 billion in impairment losses related to goodwill arising from its acquisition of a nuclear power business through Westinghouse Electric Co. LLC, because the goodwill far exceeded the company's initial estimates, S&P explained.

The downgrades and continued CreditWatch reflect a view that uncertainties are growing over Toshiba's ability to continue to fulfill its financial commitments in the long term, the agency said.

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