Bulletin: Collapse Of Toshiba's LNG Business Sale Risks Delay To Improvement In Creditworthiness

TOKYO (S&P Global Ratings) April 18, 2019--S&P Global Ratings today said that the collapse of a deal to sell Toshiba Corp.'s (BB/Positive/B) U.S. liquefied natural gas (LNG) business will potentially slow down its restructuring and an improvement in profitability, possibly resulting in a delay to improved creditworthiness. Despite the cancellation of the agreed sale, Toshiba intends to complete its withdrawal from the LNG business in the U.S. during fiscal 2019 (ending March 31, 2020). It is currently unknown when and if the sale will go ahead, or how much the company will incur in related losses. However, we do not expect the maximum loss of about ¥974 billion, as assumed as of March 31, 2018, to materialize in the short

...April 18, 2019 TOKYO (S&P Global Ratings) April 18, 2019--S&P Global Ratings today said that the collapse of a deal to sell Toshiba Corp.'s (##/Positive/B) U.S. liquefied natural gas (LNG) business will potentially slow down its restructuring and an improvement in profitability, possibly resulting in a delay to improved creditworthiness. Despite the cancellation of the agreed sale, Toshiba intends to complete its withdrawal from the LNG business in the U.S. during fiscal 2019 (ending March 31, 2020). It is currently unknown when and if the sale will go ahead, or how much the company will incur in related losses. However, we do not expect the maximum loss of about Ñ974 billion, as assumed as of March 31, 2018, to materialize in the short term. Even if it takes more than two years for Toshiba to complete the sale and the cumulative losses reach about Ñ200 billion, the company has about Ñ1.5 trillion of capital, which could help to absorb losses of that scale. Nevertheless, we foresee estimated...

Bulletin