WDET News
- Fitch Downgrades Toyota's Credit Rating
-
Nov 26, 2008Automotive & Business - Link to Audio
Fitch Ratings has downgraded Toyota’s credit rating two notches. Detroit Public Radio’s Jerome Vaughn has details.
SOQ
Fitch has lowered Toyota’s credit rating to AA down from the top rating of AAA.
The international ratings agency says Toyota is suffering from the effects of the global financial crisis.
Shrinking demand for vehicles in the United States, a stronger Japanese yen, and higher commodity prices are hurting Toyota’s bottom line.
Profits for the July to September period fell 69 percent compared to the same quarter a year ago. The automaker has dramatically cut its full-year earnings forecast – to five-point-five billion dollars.
Fitch says Toyota needs to review its focus in areas such as product mix and its speed of expansion. The ratings service says that will be a challenging process -- one that will take some time to achieve.