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
01:53p WESTERN DIGITAL : SanDisk Subsidiaries Initiate New Arbitration Proceedings Agai..
01:47p WESTERN DIGITAL : Comments on Toshiba's Intent to Transfer Flash JV Interests
12:02p TOSHIBA CORPORATION : 's Statement Regarding the Request for Arbitration Filed b..
11:16aDJBain Prevails in Toshiba Contest -- WSJ
11:14a TOSHIBA : Concludes Package Deal Agreement on Geothermal Power Generation Projec..
10:29a Toshiba to sell prized chip unit to Japan-U.S.-South Korean syndicate
10:18a TOSHIBA : Concludes Package Deal Agreement on Geothermal Power Generation Projec..
07:23a SK HYNIX : says some key issues on Toshiba chip unit sale still need agreement
06:33a WESTERN DIGITAL : takes fresh legal action against Toshiba
03:06a Western Digital takes legal step to stop Toshiba memory investment
More news
News from SeekingAlpha
07:47a TOSHIBA ROUNDUP : bid winner snag, WDC response, NAND market impact
06:15a WALL STREET BREAKFAST : Fed Sets Stage For Next Rate Hike
01:33a Toshiba sets meeting to OK sale of chip unit to Bain/SK Hynix
09/20 Western Digital files arbitration against Toshiba's Fab 6 plans
09/20 Western Digital releases statement on Toshiba selecting other chip bidder
Financials ( JPY)
Sales 2018 5 047 B
EBIT 2018 -
Net income 2018 411 B
Debt 2018 30 865 M
Yield 2018 0,11%
P/E ratio 2018 5,91
P/E ratio 2019 27,52
EV / Sales 2018 0,27x
EV / Sales 2019 0,32x
Capitalization 1 335 B
Chart TOSHIBA CORP
Duration : Period :
Toshiba Corp Technical Analysis Chart | 6502 | JP3592200004 | 4-Traders
Technical analysis trends TOSHIBA CORP
Short TermMid-TermLong Term
TrendsBullishBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 11
Average target price 281  JPY
Spread / Average Target -11%
EPS 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
Sector and Competitors
1st jan.Capitalization (M$)
TOSHIBA CORP11.39%11 867
GENERAL ELECTRIC COMPANY-23.04%210 561
3M19.59%125 625
SIEMENS0.04%117 108
HONEYWELL INTERNATIONAL19.94%105 483
ILLINOIS TOOL WORKS INC.18.93%50 852