Toshiba turned profitable in the first half of fiscal 2016 (ended Sept. 30, 2016), supported by growing demand for flash memory, and it revised upward its profit forecast for the entire fiscal 2016. We are not confident in the company's ability to continue to grow its earnings, given the high volatility of its storage business. We believe the company's liquidity and financing is relatively stable considering its close relationship with major creditor banks. We are affirming our long-term corporate credit and senior unsecured ratings at 'B' and 'BB-', respectively. The outlook on the ratings remains negative, reflecting our view that the company's financial risk profile remains under downward pressure given Toshiba's shareholders' equity is likely to remain very vulnerable and
