(The following statement was released by the rating agency)
Jan 17 - Standard & Poor's Ratings Services today assigned its 'BBB' long-term corporate credit rating to Toshiba Corporation's (Toshiba; BBB/Stable/A-2) JPY30 billion series 53 domestic currency senior straight bonds. The coupon rate is 0.62% and the bonds are due Jan. 27, 2017.
Our ratings on Toshiba reflect its stable profits and cash flow from power generation, other industrial systems, and medical equipment, as well as its strong competitiveness in NAND flash memory, backed by technological strengths and enhanced production. Standard & Poor's Ratings Services also factors into the ratings stable financing and access to capital markets. Constraints on the ratings are its core semiconductor business' high susceptibility to market fluctuations and highly variable profits, the company's consistent need for heavy capital investments, its heavy financial burden of mergers and acquisitions, and its relatively weak measures of cash flow protection and weak debt-to-capital structure for the current ratings. The company has a "satisfactory" business risk profile and an "intermediate" financial risk profile.
RELATED CRITERIA AND RESEARCH
2008 Corporate Criteria: Analytical Methodology, April 15, 2008 Key Credit Factors: Business And Financial Risks In The Global High Technology Industry, Sept. 18, 2008