Toshiba Corp. Long-Term Corporate Credit And Debt Ratings Lowered To 'CCC-'; Ratings Still On CreditWatch Negative

We see a rising likelihood Toshiba's heavy losses and financial burden related to its U.S. nuclear power business will grow further. The specifics of its plan to sell its NAND flash memory business have yet to be determined and it will be some time before the proceeds of a sale materialize. Toshiba's current creditor banks are likely to find it difficult to accept any potential request from the company for further funding, 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

...+ We see a rising likelihood Toshiba's heavy losses and financial burden related to its U.S. nuclear power business will grow further. + The specifics of its plan to sell its NAND flash memory business have yet to be determined and it will be some time before the proceeds of a sale materialize. + Toshiba's current creditor banks are likely to find it difficult to accept any potential request from the company for further funding, 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. + We are lowering our long-term corporate credit rating on Toshiba two notches to '###-' and our senior unsecured...

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