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Toshiba shares tumble after second downgrade

Thursday, December 29, 2016 - 01:07

Shares in Toshiba have fallen more than 19 percent, clocking a third day of heavy losses after the Japanese tech-to-nuclear conglomerate said earlier this week it faced a potential multi-billion dollar writedown. Sonia Legg reports

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A second downgrade in as many days led to another bruising day for Toshiba. Moody's pushed the Japanese firm's credit rating deeper into junk, saying there were "mounting concerns" about corporate governance. It follows a warning from bosses earlier in the week. They admitted the conglomerate is facing a potential multi-billion dollar writedown after cost overruns at a U.S. nuclear business. It only bought Chicago Bridge and Iron last year. (SOUNDBITE) (Japanese) TOSHIBA CEO, SATOSHI TSUNAKAWA, SAYING: "We may revise the positioning of nuclear business in the future if it's needed." After the new downgrade Toshiba's shares plunged a near 20 percent for a second day. Since Tuesday $6.5 billion has been wiped off the value of the firm. It's now below that of rival Sharp for the first time in seven years. Bonds yields and the cost of insuring against debt have also surged. Executives say it could be February before they can pinpoint the exact impact. That's left investors fretting about Toshiba's core semi-conducter business and possible firesales.

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Toshiba shares tumble after second downgrade

Thursday, December 29, 2016 - 01:07