Toshiba lowered long-term rating by one notch to BBB- by Standard … – The Express

“ The accounting irregularities still could affect the Group’s results over the next two years ,” explained the agency in a statement.

S & amp; P had placed under surveillance Toshiba July 21, when the company released the findings of an inquiry committee on accounting irregularities discovered a few weeks earlier in the group.

After four months late, Toshiba finally announced Monday it had completed the year April 2014 to March 2015 to a net loss of 37.8 billion yen ($ 280 million), while the group escomptait pre-crisis falsified accounts a net profit of 120 billion.

“ According to these results, we have revised down estimates of profitability and cash flow ratios for Toshiba for the year 2015 and beyond ” , said S & amp; P.

“ We integrate these perspectives in the fact that the commercial operations of the group in infrastructure projects (where significant accounting errors were made – editor’s note) will probably suffer from negative impact “may also affect other divisions, the agency said.

S & amp; P still considers that the pillar activity Nand flash memory, a specialty of Toshiba, could suffer from lower growth than expected in connection with the demand for smartphones worldwide.

S & amp; P, however, considers that Toshiba showed “ resolute attitude to avoid a recurrence of the recent problems, as shown by the appointment of new members of its Board of Directors and new provisions for decision-making within the company management structure “.

Toshiba remains by S & amp; P a company capable of generating a certain level of cash flow and control capital expenditures while maintaining a strong relationship with its major banks.

However, the new note is with a negative perspective “ reflects a downside risk to financial performance ” until the new arrangements made take effect and blur the bad image of the group because of the recent scandal.

Meanwhile, Moody’s said Wednesday maintain the note from Toshiba, although this ugly embezzlement affair weighs negatively. Moody’s considers in fact that the group has the capacity to improve its situation to return “ in a relatively short time ” to the level required by its emitter current rating (Baa2).

Toshiba, whose activities range of integrated circuits for nuclear reactors via computers and computer servers, appliances, audiovisual equipment, turbines, elevators or handling equipment, was forced to review its accounting methods used inappropriately between 2008 and 2014.

Overall, the net result on all relevant years was overstated by 155.2 billion yen (1.1 billion euros) and 224.8 billion yen in the balance before taxes, according to figures provided by the firm.

The faults revealed by a committee of independent experts, had resulted among others in July the resignation of the CEO, Hisao Tanaka, and his two direct predecessors, all those found responsible for irregularities.