Toshiba Corp. Upgraded To 'CCC+' On Deal To Sell Westinghouse-Related Assets; Ratings On CreditWatch Positive

Toshiba's announcement on Jan. 18, 2018, of a deal to sell its Westinghouse-related assets has heightened the likelihood of the company erasing its negative net worth. Therefore, we believe the likelihood of debt restructuring, including a debt-for-equity swap, in the near term has decreased significantly. We are raising two notches to 'CCC+' our long-term ratings on Toshiba and are placing them on CreditWatch with positive implications. We are keeping our short-term ratings on the company on CreditWatch with positive implications. In resolving the CreditWatch placements, we will reassess prospects for Toshiba's financial recovery, competitive advantage, and overall profitability following a sale of Toshiba Memory and will also examine support from key lender banks. TOKYO (S&P Global Ratings) Jan. 19, 2018--S&P

...+ Toshiba's announcement on Jan. 18, 2018, of a deal to sell its Westinghouse-related assets has heightened the likelihood of the company erasing its negative net worth. + Therefore, we believe the likelihood of debt restructuring, including a debt-for-equity swap, in the near term has decreased significantly. + We are raising two notches to '###+' our long-term ratings on Toshiba and are placing them on CreditWatch with positive implications. We are keeping our short-term ratings on the company on CreditWatch with positive implications. + In resolving the CreditWatch placements, we will reassess prospects for Toshiba's financial recovery, competitive advantage, and overall profitability following a sale of Toshiba Memory and will also examine support from key lender banks. TOKYO (S&P Global Ratings) Jan. 19, 2018--S&P Global Ratings today said it has raised two notches to '###+' from '###-' both its long-term corporate credit and senior unsecured debt ratings on Japan-based capital goods...

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