Ratings On Japan-Based Toshiba Corp. Remain On CreditWatch Negative As Negotiations To Sell Memory Business Continue

Creditor banks' support for Toshiba together with the company's liquidity levels warrant continued close monitoring because the company's plan to sell its memory business has yet to materialize and additional losses or financial burdens might still arise in connection with its U.S. nuclear power business. We continue to hold the view that without unanticipated, significantly favorable changes in Toshiba's circumstances, the company might become unable to fulfill its financial obligations in a timely manner or might undertake a debt restructuring that we classify as distressed in the next six months. We are keeping our long- and short-term ratings on Toshiba on CreditWatch negative. We intend to review the ratings and resolve the CreditWatch after examining developments in the next one

...+ Creditor banks' support for Toshiba together with the company's liquidity levels warrant continued close monitoring because the company's plan to sell its memory business has yet to materialize and additional losses or financial burdens might still arise in connection with its U.S. nuclear power business. + We continue to hold the view that without unanticipated, significantly favorable changes in Toshiba's circumstances, the company might become unable to fulfill its financial obligations in a timely manner or might undertake a debt restructuring that we classify as distressed in the next six months. + We are keeping our long- and short-term ratings on Toshiba on CreditWatch negative. We intend to review the ratings and resolve the CreditWatch after examining developments in the next one to two months. + We might lower the ratings if Toshiba's ability to fulfill its financial obligations in a timely manner becomes strained or we determine that debt restructuring we classify as distressed...

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