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Following
the announcement of in a $5.4-billion
deal, US rating agency Moody''s Investors Service today
placed the ratings of Japanese electronics giant under
review for a possible downgrade.
In
a statement Moody''s said it would review Toshiba''s A3
long-term debt ratings. Moody''s review for a possible
downgrade indicates the purchase could become a constraint
on Toshiba''s finances though it could also strengthen
its nuclear business in the long run.
Toshiba
has said that it would retain an over 51-per cent stake
in Westinghouse, and offer minority stakes to some other
Japanese or US-based companies.
In
Tokyo, the Japanese company''s stocks shed half a per cent
in today''s trades
Earlier
last month, Standard & Poor''s had placed Toshiba''s
ratings under review when the news of the Westinghouse
acquisition first surfaced, saying that over paying could
negatively impact Toshiba''s other operations. Toshiba
is a major manufacturer of electronics and computer chips.
Toshiba
regards the nuclear business attractive because of its
huge potential in China, which plans to build more nuclear
power plants to meet its growing energy demand.
The
purchase of Westinghouse gives Toshiba access to the US
company''s pressurised water reactors, which have a larger
global market share than Toshiba''s boiling water reactor
technology.
also see : Toshiba
Corp's acquisition of Westinghouse
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