Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Tokyo  >  Toshiba Corp    6502   JP3592200004

SummaryChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

S&P downgrade warning sends Toshiba shares falling

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/17/2017 | 11:36am CEST
FILE PHOTO -  Logo of Toshiba Corp is seen outside an electronics retail store in Tokyo

S&P Global Inc (>> S&P Global Inc) said in a report on Friday it could cut its rating of Toshiba Corp (>> Toshiba Corp) credit by several notches should the Japanese firm receive financial support that includes debt restructuring, sending Toshiba stock down 9 percent.

S&P Global Inc (>> S&P Global Inc) said in a report on Friday it could cut its rating of Toshiba Corp (>> Toshiba Corp) credit by several notches should the Japanese firm receive financial support that includes debt restructuring, sending Toshiba stock down 9 percent.

S&P rates Toshiba credit as junk, at CCC+, following downgrades in December and January, after the conglomerate flagged a multi-billion dollar writedown in its nuclear power business. The credit-rating firm expects banks to help Toshiba, including by extending deadlines for loan repayments.

Any further downgrade would prompt banks to charge Toshiba even higher rates for credit, at a time when the conglomerate is dealing with the crippling writedown while still working to recover from a financial scandal in 2015.

"If any financial support includes debt-to-equity swaps or changes in loan conditions, we would consider that as selective default," S&P Global analyst Hiroki Shibata said in a telephone conference later on Friday. "In that event, we might cut its rating by several notches."

Shibata drew comparison with Sharp Corp (>> Sharp Corporation). In 2015, S&P rated the panel maker's debt 'selective default' after it agreed a 200 billion yen (£1 billion) debt-to-equity swap with main lenders Mizuho Bank Ltd [MZFGAE.UL] and Bank of Tokyo Mitsubishi UFJ Ltd.

The next day, S&P raised the rating to junk, at B-, expecting the bailout to strengthen Sharp's finances. But five months later, S&P cut the rating further into junk, to CCC-, as Sharp's main business failed to improve.

On Thursday, Sumitomo Mitsui Financial Group Inc's (>> Sumitomo Mitsui Financial Group, Inc.) banking unit - one of Toshiba's main lenders - said it would provide the conglomerate with as much support as possible. The other main lender is Mizuho Financial Group Inc (>> Mizuho Financial Group, Inc.).

A day earlier, Toshiba executives asked creditors for an extension of a waiver for a loan covenant violation until the end of next month, people familiar with the matter told Reuters.

S&P's Shibata on Friday also said the credit-rating firm was closely watching Toshiba's likely sale of its chip business.

Toshiba initially planned to sell less than 20 percent of its NAND flash memory unit, but is now considering selling most or all the business some time after March 31, a person with knowledge of the matter told Reuters.

The chip business is cyclical and capital intensive but currently generates stable profit, so its sale could essentially be negative for Toshiba, Shibata said.

A Toshiba spokesman said the firm is not in a position to comment on the assessments of credit-rating firms.

Separately, Toshiba said in a stock exchange filing on Thursday that it would buy 3 percent of U.S. nuclear power subsidiary Westinghouse Electric Co LLC from IHI Corp (>> IHI Corp) for $157 million, after the Japanese infrastructure firm exercised an option to sell.

The multi-billion dollar writedown in Toshiba's nuclear business stemmed from a unit owned by Westinghouse.

(Reporting by Junko Fujita and Tim Kelly; Editing by Clara Ferreira Marques and Christopher Cushing)

By Junko Fujita

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on TOSHIBA CORP
03/28 TOSHIBA : Adds Features to Scalable Ultrasound
03/28 TOSHIBA PLANT & SERVICES : New coal-fired plant billed at $600 million
03/28 TOSHIBA : Japan gov't may ban Toshiba from selling chip business to China firm
03/28 JAPAN FINANCE MINISTER : No comment on reports Westinghouse to file Chapter 11
03/28 Toshiba's options in U.S. nuclear bankruptcy
03/27 Toshiba shares rise after report Westinghouse may file bankruptcy Tuesday
03/27 UPDATE5 : Toshiba seeks Korea Elec. help as nuclear unit eyes bankruptcy filing
03/27 Toshiba wants Westinghouse to file for bankruptcy as early as Tuesday - sourc..
03/27 UPDATE4 : Toshiba seeks Korea Elec. help as nuclear unit eyes bankruptcy filing
03/27 UPDATE3 : Toshiba seeks Korea Elec. help as nuclear unit eyes bankruptcy filing
More news
Sector news : Industrial Conglomerates
03/28DJDuPont, Dow Get EU Approval for Merger -- WSJ
03/28 Toshiba's options in U.S. nuclear bankruptcy
03/27DJForeign Investors Flock to Iran as U.S. Firms Watch on the Sidelines -- Updat..
03/27DJEU Clears Dow-DuPont Deal With Conditions -- 2nd Update
03/27DJEU Clears Dow-DuPont Deal With Conditions -- Update
More sector news : Industrial Conglomerates
News from SeekingAlpha
03/28 REUTERS : Toshiba's Westinghouse to file for bankruptcy today
03/27 WALL STREET BREAKFAST : Markets Rethink The Trump Agenda
03/27 Westinghouse may file bankruptcy Tuesday
03/27 Buy Western Digital Ahead Of Toshiba Memory Acquisition
03/24 REUTERS : Toshiba plans Westinghouse Chapter 11 filing, sees $9B in charges
Advertisement
Financials ( JPY)
Sales 2017 5 492 830 M
EBIT 2017 -
Net income 2017 -355 603 M
Debt 2017 640 074 M
Yield 2017 0,13%
P/E ratio 2017 -
P/E ratio 2018 6,68
EV / Sales 2017 0,29x
EV / Sales 2018 0,24x
Capitalization 925 492 M
More Financials
Chart TOSHIBA CORP
Duration : Period :
Toshiba Corp Technical Analysis Chart | 6502 | JP3592200004 | 4-Traders
Full-screen chart
Technical analysis trends TOSHIBA CORP
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 13
Average target price 265  JPY
Spread / Average Target 21%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Satoshi Tsunakawa Executive President & Director
Masayoshi Hirata Chief Financial Officer & Director
Naoto Nishida Senior Managing Executive Officer
Yasuo Naruke Director & Representative Executive Vice President
Kouichi Ikeda Independent Outside Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
TOSHIBA CORP-23.27%8 363
GENERAL ELECTRIC COMPA..-6.84%256 385
3M CO6.64%113 800
SIEMENS AG5.05%113 306
HONEYWELL INTERNATIONA..7.47%94 709
E I DU PONT DE NEMOURS..9.78%69 667
More Results