S&P downgrade warning sends Toshiba shares falling

TOKYO: S&P Global Inc said in a report on Friday it could cut its rating of Toshiba Corp (6502.T) credit by several notches should the Japanese firm receive financial support that includes debt restructuring, sending Toshiba stock down 9 per cent. S&P rates Toshiba credit as junk, at CCC+, following downgrades in December and January, after the conglomerate flagged a multi-billion dollar writedown in its nuclear power business. The credit-rating firm expects banks to help Toshiba, including by extending deadlines for loan repayments. Any further downgrade would prompt banks to charge Toshiba even higher rates for credit, at a time when the conglomerate is dealing with the crippling writedown while still working to recover from a financial scandal in 2015. — Reuters