We have revised downward our assumption of Toshiba's profits for the next two years to reflect a likelihood that inappropriate accounting may continue to negatively affect the company's earnings. We also made a slight downward revision to our outlook for the company's cash flow and leverage ratios. We are lowering to 'BBB-' from 'BBB' our long-term ratings and to 'A-3' from 'A-2' our short-term ratings on Toshiba and have removed them from CreditWatch. The outlook is negative, reflecting our view of downside risk in the outlook for the company's earnings and financial performance in the next one to two years. We hold this view because of a likelihood that the company's new business strategy will take time to yields results
