Toshiba has announced its reform plan to restructure its businesses, mainly its unprofitable television and home appliance businesses, and a material downward revision of its estimated operating performance for fiscal 2015. Profits and free cash flow are likely to fall far below our assumptions for fiscal 2015, and deterioration of business results and financial standing is likely to exceed tolerances for the previous ratings even with the incorporation of a certain level of recovery. We are lowering our long- and short-term corporate credit ratings on Toshiba one notch to 'BB+/B' and are placing the long-term rating on CreditWatch with negative implications. We are affirming our long-term senior unsecured issue rating at 'BBB-', reflecting our view that Toshiba is less likely
