Toshiba Restructuring Plan Feasibility Amid Materializing Risk In Nuclear Business, Bank Support Remain Key For Ratings

TOKYO (S&P Global Ratings) Feb. 17, 2017--Japan-based capital goods and diversified electronics company Toshiba Corp. ('CCC+/C') announced on Feb. 14, 2017, that it will postpone disclosure of its earnings results for fiscal 2016's third quarter (ended Dec. 31, 2016) by up to one month. At the same time, it unveiled provisional earnings results, including a ¥712.5 billion impairment loss and a ¥499.9 billion net loss, resulting in negative shareholders' equity. Our ratings on Toshiba remain on CreditWatch with negative implications after downgrades in December 2016 and January 2017, reflecting growing prospects that the company will incur massive losses in its nuclear power business in the U.S. We will continue to monitor prospects for its business restructuring, given materializing risk in

...TOKYO (S&P Global Ratings) Feb. 17, 2017--Japan-based capital goods and diversified electronics company Toshiba Corp. ('###+/C') announced on Feb. 14, 2017, that it will postpone disclosure of its earnings results for fiscal 2016's third quarter (ended Dec. 31, 2016) by up to one month. At the same time, it unveiled provisional earnings results, including a Ñ712.5 billion impairment loss and a Ñ499.9 billion net loss, resulting in negative shareholders' equity. Our ratings on Toshiba remain on CreditWatch with negative implications after downgrades in December 2016 and January 2017, reflecting growing prospects that the company will incur massive losses in its nuclear power business in the U.S. We will continue to monitor prospects for its business restructuring, given materializing risk in its nuclear power business. We will pay high attention to its creditor banks' supportive stance toward the company while watching further development of its plan to sell its NAND flash memory (semiconductor)...

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