Bulletin: Toshiba Management Issues Loom Over Credit Quality

TOKYO (S&P Global Ratings) April 15, 2021--S&P Global Ratings cannot rule out the possibility that recent developments at Toshiba Corp. (BB+/Stable/B), including a change of CEO, will hurt the stability of its management and business performance. The Japan-based capital goods and diversified electronics company said on April 14, 2021, that Nobuaki Kurumatani had resigned as CEO and former chairman Satoshi Tsunakawa would take his place. Whether the new management can maintain a stable regime is unclear. Instability could indirectly hurt the chances of Toshiba's social infrastructure business securing orders. This business is at the core of the company's operations. Another potential issue for Toshiba's credit quality is the initial buyout proposal that CVC Capital Partners made earlier this month. Toshiba's

...April 15, 2021 TOKYO (S&P Global Ratings) April 15, 2021--S&P Global Ratings cannot rule out the possibility that recent developments at Toshiba Corp. (##+/Stable/B), including a change of CEO, will hurt the stability of its management and business performance. The Japan-based capital goods and diversified electronics company said on April 14, 2021, that Nobuaki Kurumatani had resigned as CEO and former chairman Satoshi Tsunakawa would take his place. Whether the new management can maintain a stable regime is unclear. Instability could indirectly hurt the chances of Toshiba's social infrastructure business securing orders. This business is at the core of the company's operations. Another potential issue for Toshiba's credit quality is the initial buyout proposal that CVC Capital Partners made earlier this month. Toshiba's response to the U.K.-based private equity company's approach remains unclear. We recognize that, in general, companies that come under the control of private equity funds...

Bulletin