WRAPUP 2-Toyota debt rating cut, Suzuki holds out hope for GM

* Fitch cuts Toyota credit rating, shares fall 4.6 pct

* Suzuki CEO says GM bankruptcy "100 pct" impossible

* Mazda to idle Japan factory for two days next month (Adds credit default swaps move)

By Chang-Ran Kim, Asia autos correspondent

TOKYO, Nov 26 (Reuters) - Toyota Motor Corp (7203.T) had its top-notch credit ratings cut for the first time in a decade, hitting its shares and raising borrowing costs as an unprecedented slowdown reshapes the global auto industry.

Fitch Ratings on Wednesday downgraded Toyota's long-term foreign and local debt ratings to AA from AAA, with a negative outlook, saying the company needed to review its global investments, product mix and speed of expansion to address the challenges it faces. [ID:nWNA0387]

"The negative developments in the industry are so substantial and fundamental that even the strongest player -- Toyota -- can no longer support an 'AAA' rating," said Fitch Director Tatsuya Mizuno.

Sales in the United States and Europe have plunged as access to credit dried up, with the slowdown spreading to China, India, Russia and other markets on which automakers had placed their last hopes for near-term growth.

"It's impossible to tell where demand will go next year and beyond," Suzuki Motor Corp (7269.T) Chief Executive Osamu Suzuki said at a car launch in Tokyo on Wednesday.

"If there's a market that's not being affected by the United States, it's not on this planet."

In the latest evidence of slowing demand in emerging markets, Toyota is expecting next year's vehicle sales in Russia to fall below this year's level, Japan's Kyodo news agency reported, citing Tadashi Arashima, the head of Toyota's European operations. [ID:nT107295]

YEN STRENGTH HURTS

The yen's strength against the dollar and most other currencies is dealing a double blow to Japanese carmakers, which have slashed their profit forecasts in the past month.

Toyota, the world's largest automaker, had consolidated debt of 12.2 trillion yen ($128 billion) as of March, according to Fitch.

It remains the only automaker with the top Triple-A rating from Standard & Poor's and Moody's Investors Service, which was the last ratings firm to cut Toyota, in 1998.

The cost of protection against a default in Toyota's debt rose after the Fitch downgrade, with five-year credit default swaps TOYC5YUSAC=GF widening by 10 basis points to 180. That means an investor would pay $180,000 a year for protection against a default in $10 million of Toyota's underlying debt.