Bulletin: Toshiba's Turmoil May Hit Creditworthiness Hard

TOKYO (S&P Global Ratings) June 28, 2021--Growing management upheaval at Toshiba Corp. (BB+/Stable/B) is increasingly likely to hurt its operating and financial performance, in S&P Global Ratings' view. We cannot foresee the Japan-based capital goods and diversified electronics company's new management regime in the wake of a recent shake-up. The instability follows a report by an independent probe that found Toshiba's 2020 general shareholders meeting was not conducted in an impartial manner. Five of the company's 13 directors retired or resigned between the report's release on June 10, 2021, and its general shareholders meeting on June 25, 2021--including the shareholder-led ouster of board chairman Osamu Nagayama. President and CEO Satoshi Tsunakawa is interim board chairman and aims to swiftly fill

...June 28, 2021 TOKYO (S&P Global Ratings) June 28, 2021--Growing management upheaval at Toshiba Corp. (##+/Stable/B) is increasingly likely to hurt its operating and financial performance, in S&P Global Ratings' view. We cannot foresee the Japan-based capital goods and diversified electronics company's new management regime in the wake of a recent shake-up. The instability follows a report by an independent probe that found Toshiba's 2020 general shareholders meeting was not conducted in an impartial manner. Five of the company's 13 directors retired or resigned between the report's release on June 10, 2021, and its general shareholders meeting on June 25, 2021--including the shareholder-led ouster of board chairman Osamu Nagayama. President and CEO Satoshi Tsunakawa is interim board chairman and aims to swiftly fill the open posts at an extraordinary general shareholders meeting. Toshiba's credit quality may come under heavy pressure if the disarray continues and harms a recovery in operating...

Bulletin