Toyota Suffers First Credit Rating Cut in 10 Years

Source: Bloomberg

Nov. 26 (Bloomberg) -- Toyota Motor Corp.'s debt rating was cut by Fitch Ratings, the automaker's first downgrade in 10 years, as the slump in U.S. car sales drags down earnings at the company with the industry's best credit.

Fitch cut Toyota's senior unsecured debt rating two levels to AA from AAA with a negative outlook on the company, it said in a report today. The shares dropped 4.6 percent, the most in two weeks, to 2,985 yen.

A lower debt rating raises borrowing costs for Toyota, potentially hindering its ability to offer interest-free loans to boost sales in the U.S. Toyota, set to topple General Motors Corp.'s 77-year reign as the world's largest automaker this year, may also have its worst share performance since at least 1975.

``Toyota is suffering severely from the ongoing turmoil in the global automotive sector,'' said Tatsuya Mizuno, director at Fitch Ratings, in the report. ``The negative developments in the industry are so substantial and fundamental that even the strongest player -- Toyota -- can no longer support a `AAA' rating.''



Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=amrllMTSZAbI&refer=home

---

Toyota's CEO was last seen buying a coach ticket for Washington DC.

oh wait.

I guess that blows that particular pile of cheese out of the water............

They hate it even more when it turns out that good wages BUILD an economy, and poor wages destroy it.

But....keep it under your hat!

Just some of their gas hogs

Toyota Sequoia
Toyota Tundra
Highlander
4Runner
Land Cruiser
Tacoma

And many more.

.

26% drop in sales in October. Nissan sales dropped 33%. It's not just America's big three.

Somebody has to make cars in the future. I can't imagine going back to horse an buggy. Though I have been thinking about getting a bicycle. Most places I need to go are within four miles.

you step a little more.

who isn't in the toilet by now? Or at least headed there.