Toshiba’s Looming Writedown Wipes Out Gain From 2016 Share Rally
- S&P Global Ratings, Moody’s and R&I cut Toshiba credit rating
- Writedown related to dispute over value of Westinghouse deal
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Toshiba Corp.’s impending multibillion-dollar writedown has triggered one of the worst-ever share declines for a major Japanese company, with ratings downgrades and investor pessimism erasing almost all of its 87 percent rally this year.
Shares in the electronics and industrial conglomerate fell 17 percent to 259 at the close on Thursday. Toshiba said it may write down billions of dollars of an acquisition made by U.S. unit Westinghouse Electric, fueling a share decline this week that has wiped out about 800 billion yen ($6.8 billion) in market value. Moody’s Investors Service, Rating and Investment Information Inc. and S&P Global Ratings all responded by cutting Toshiba’s credit ratings.