Moody''s puts Toshiba ratings under review
By Our Corporate Bureau | 07 Feb 2006
In a statement Moody''s said it would review Toshiba''s A3 long-term debt ratings. Moody''s review for a possible downgrade indicates the purchase could become a constraint on Toshiba''s finances though it could also strengthen its nuclear business in the long run.
Toshiba has said that it would retain an over 51-per cent stake in Westinghouse, and offer minority stakes to some other Japanese or US-based companies.
In Tokyo, the Japanese company''s stocks shed half a per cent in today''s trades
Earlier last month, Standard & Poor''s had placed Toshiba''s ratings under review when the news of the Westinghouse acquisition first surfaced, saying that over paying could negatively impact Toshiba''s other operations. Toshiba is a major manufacturer of electronics and computer chips.
Toshiba regards the nuclear business attractive because of its huge potential in China, which plans to build more nuclear power plants to meet its growing energy demand.
The purchase of Westinghouse gives Toshiba access to the US company''s pressurised water reactors, which have a larger global market share than Toshiba''s boiling water reactor technology.
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