Toshiba has announced it might recognize several ¥100 billion in impairment losses related to goodwill arising from its acquisition of a nuclear power business through U.S.-based Westinghouse Electric, because the goodwill far exceeded its initial estimates. Toshiba's net profit for full fiscal 2016 is likely to fall far short of its previous guidance, and therefore we believe its shareholders' equity will suffer considerable erosion, heightening the likelihood that its business and financial standing will come under further strain. We are lowering our long-term corporate credit and senior unsecured debt ratings on Toshiba one notch each to 'B-' and 'B+', respectively, and we are placing them on CreditWatch with negative implications. At the same time, we are placing our 'B' short-term
