The ratings on Japan-based diversified electronics manufacturer Toshiba Corp. (BBB/Stable/A-2) reflect its satisfactory business risk profile and intermediate financial risk profile. Strengths that support the ratings are Toshiba's solid position in power generation and other industrial systems and medical equipment, its strong competitiveness in NAND flash memory, and its stable access to capital markets. Constraints on the ratings are the core semiconductor businesses' high susceptibility to market fluctuations, the company's consistent need for heavy capital investment, and relative weakness both in measures related to cash flow and in its debt-to-capital structure. Toshiba is Japan's second-largest diversified electronics manufacturer, after Hitachi Ltd. (BBB+/Positive/A-2). The company's three core units--digital products, electronic devices, and social infrastructure--accounted for more than 90% of total sales
