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S&P cuts Toshiba's corporate credit rating to BBB-minus.

TOKYO, Aug. 2 Kyodo

Standard & Poor's Corp. (S&P) said Friday it has lowered its corporate credit rating on Toshiba Corp. to BBB-minus from BBB, citing grim prospects for the company to boost earnings.

The outlook on the long-term credit rating is negative, the U.S. credit-rating agency said.

S&P said the downgrade reflects its view that the integrated electronics maker will be unable to increase earnings from its key businesses, such as semiconductors, digital media and infrastructure, in the short term.

''Unless Toshiba significantly improves the competitiveness of its strategic business units, such as semiconductors and digital media, a fundamental strengthening in its earnings power is unlikely,'' S&P's credit analyst Fusako Nagao said.

However, both semiconductor and digital media operations are facing problems, including high research and development costs and increasingly competitive market conditions, S&P said.

The rating agency affirmed Toshiba's A-3 short-term rating the same day, saying Toshiba has sufficient liquidity.
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Comment:S&P cuts Toshiba's corporate credit rating to BBB-minus.
Publication:Japan Consumer Electronics Scan
Geographic Code:9JAPA
Date:Aug 5, 2002
Words:156
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