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Shares in Toshiba fell as much as 12.5 per cent on Friday after rating agency S&P global said it is monitoring support for the company from creditors and will consider downgrading the conglomerate if that support includes any form of debt restructuring.
Toshiba’s stock has fallen 24.8 per cent in the week to date, wiping out ¥230bn ($2.03bn) of its market capitalisation.
The company on Tuesday announced further details on a $6.3bn writedown at its US nuclear business. It also plans to sell parts of its profitable technology business, including its Nand chip unit.
S&P, which curently rates Toshiba as CCC+, said:
Even if in the event banks continue to provide financial support for the company, if it includes any form of debt restructuring we define as selective default, we will lower the ratings by multiple notches.
Mitsubishi Heavy Industry told the Financial Times in an interview published today it would not be coming to Toshiba’s aid in its nuclear reactor business after analysts suggested the troubled conglomerate may need to partner with another Japanese company with nuclear capabilities to survive.