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. "If any financial support includes debt-to-equity swaps or changes in loan conditions, we would consider that as selective default," S&P Global analyst Hiroki Shibata said in a telephone conference later on Friday. On Thursday, Sumitomo Mitsui Financial Group Inc's banking unit said it would provide Toshiba with as much support as possible. The multi-billion writedown in Toshiba's nuclear business stemmed from a unit owned by Westinghouse.

Source: The Edge Markets February 17, 2017 08:48 UTC