Toyota Requests 1-T.-Yen Credit Lines amid Coronavirus Crisis

Economy

Tokyo, March 27 (Jiji Press)--Toyota Motor Corp. <7203> has asked Sumitomo Mitsui Banking Corp. and MUFG Bank to establish lines of credit totaling one trillion yen, informed sources said Friday.

The Japanese automaker does not face financial difficulties at present, with over 5 trillion yen in cash and deposits at the end of last year.

But the company hopes to make financing available at any time to prepare for the possibility of a prolonged economic downturn amid the coronavirus outbreak, the sources said.

Toyota has moved to suspend vehicle production in Japan and abroad temporarily due to lower demand globally. In response, Moody's Japan K.K. cut Toyota's credit rating by one notch on Thursday.

The automaker thinks that credit lines, which could be drawn on as needed, will ensure that it is fully prepared in terms of financing, the sources said. The banks are expected to accept the request.

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Jiji Press