TOKYO (Standard&Poor's) Dec. 27, 2001--Standard&Poor's today lowered its long-term rating on Toshiba Corp. to triple-'B' from triple-'B'-plus and its short-term rating to 'A-3' from 'A-2', and removed the ratings from CreditWatch, where they were placed on Nov. 5, 2001. The outlook on the long-term rating is negative. The downgrade reflects Toshiba's weakening profitability and cash flow protection, largely resulting from its weakening business base. The downgrade also reflects our expectation that Toshiba will not achieve a marked improvement in its fundamental earnings and cash flow generation in the short term. Toshiba's earning base has been eroded by its weakening operating performance in its mainstay businesses, such as electronic devices and IT-related equipment, which have faced stagnant
