Japan Big Banks Seen Upgrading Toshiba to Normal Borrower
Tokyo, Sept. 26 (Jiji Press)--Major Japanese banks are seen granting Toshiba Corp. <6502> normal borrower status in their loan classification, up from the current status of borrower requiring caution, informed sources said Wednesday.
Sumitomo Mitsui Banking Corp. and others are considering such a one-notch upgrade because Toshiba's financial health has improved dramatically thanks to the sale of its semiconductor business in June.
Sumitomo Mitsui Banking will review its loan classification for Toshiba as early as this month. Mizuho Bank and Sumitomo Mitsui Trust Bank are each considering a similar upgrade.
Toshiba dived into negative net worth in the year to March 2017, mainly due to massive losses at its U.S. nuclear plant business. This led the three major creditor banks to downgrade Toshiba from a normal borrower to a borrower requiring caution.
In the following year, Toshiba wiped out its excess debts over assets after capital replenishment. In June this year, the company sold its semiconductor business as requested by the creditor banks.
[Copyright The Jiji Press, Ltd.]