We see a lingering likelihood Toshiba's heavy losses and financial burden related to its U.S. nuclear power business will grow further. Proceeds of a sale of its memory business will still take some time to materialize. Toshiba's current creditor banks are likely to have difficulty accepting any potential request for further funding from the company, in our view, considering that Japan's stock exchanges have placed Toshiba's stock under supervision, having seen insufficient improvement in Toshiba's internal controls. Absent unanticipated, significantly favorable changes in the issuer's circumstances, we see a rising likelihood Toshiba will become unable to fulfill its financial obligations in a timely manner or will undertake a debt restructuring we classify as distressed in the next six months. Our
