Ja­pan: No bailout for Toshiba

New Straits Times - - Business -

TOKYO: The govern­ment is not con­sid­er­ing steps to sup­port Toshiba, said chief cabi­net sec­re­tary Yoshi­hide Suga yes­ter­day.

The loss-hit gi­ant this week missed sub­mit­ting au­dited thirdquar­ter earn­ings for a sec­ond time and said it would con­sider sell­ing a ma­jor­ity stake in the West­ing­house nu­clear unit at the cen­tre of its fi­nan­cial trou­bles.

Sources have said a fund backed by the govern­ment may in­vest as a mi­nor­ity stake­holder in Toshiba’s mem­ory chip busi­ness, which the com­pany is look­ing to sell to raise cash.

Mean­while, Stan­dard & Poor’s (S&P) cut its credit rat­ing on Toshiba again yes­ter­day, warn­ing that its fi­nances were quickly de­te­ri­o­rat­ing ow­ing to huge losses at West­ing­house.

S&P slashed its out­look on the group by two notches to “CCC-”, push­ing it fur­ther into junk sta­tus after ear­lier down­grades in De­cem­ber and Jan­uary.

Toshiba could be run­ning out of op­tions for turn­ing around its busi­ness or se­cur­ing emer­gency bank fund­ing, it added. Agen­cies

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