Toshiba Corp has won a single A long-term corporate credit rating from Standard & Poor’s Corp, which also assigned its single A long-term issue rating to the joint $1bn Euro medium-term note programme of Toshiba and its Toshiba International Finance (Netherland) BV financing unit. The outlook for the ratings is stable. They reflect Toshiba’s diverse range of businesses, including particularly strong positions in notebook computers, semiconductors and heavy electrical apparatus. While Toshiba’s earnings from semiconductor operations are expected to decline significantly for the year that ends in March as a result of the severe market downturn, this should be partially offset by increasing exports of notebook computers, fueled by strong demand for the firm’s notebooks worldwide. Further reductions in debt and increased control over capital investment through strategic alliances should offset the impact on Toshiba’s credit rating of increased competition and reliance on cyclical and capital intensive business, the agency added.
