Moody's cut Toshiba's long-term senior unsecured bonds to speculative grade Ba2 from Baa3, and said it would review the rating for further downgrade.
"The downgrades were prompted by Toshiba's announcement of its structural reform plan and financial forecast for the fiscal year ending 31 March 2016," Moody's senior analyst Masako Kuwahara said in a statement.
"We expect that Toshiba's leverage will stay high over a prolonged period, given that its restructuring costs will exceed our previous estimates, and our expectation of improvement in earnings, if any, for each business segment will be very gradual even after the restructuring."



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