Mon, February 08, 2010
Business > Industries > Toyota's global massive recalls

S&P may downgrade Toyota's rating

2010-02-06 00:26:19 GMT2010-02-06 08:26:19 (Beijing Time)  Xinhua English

People walk past a car dealer of Toyota Motor Corp. in New York, the United States, on Feb. 5, 2010. The Japanese automaker Toyota has decided a mandatory recall of 270,000 units of its third-generation Prius hybrid car, which some consumers have reported has a brake problem, local media reported on Friday. Toyota, which has had a reputation for safety for many years, is likely to see a huge dent in its sales as media worldwide question the reliability of the cars. Analysts said that the automak

Photo taken on Feb. 5, 2010 shows a Toyota Motor Corp.'s Prius hybrid car at a car dealer in New York, the United States.(Xinhua/Liu Xin)

Customers sit beside a Toyota Motor Corp.'s Prius hybrid car at a car dealer in New York, the United States, on Feb. 5, 2010. (Xinhua/Liu Xin)

Photo taken on Feb. 5, 2010 shows the brake pedal and the accelerator of a Toyota Motor Corp.'s Prius hybrid car at a car dealer in New York, the United States.(Xinhua/Liu Xin)

Photo taken on Feb. 5, 2010 shows the logo of the Toyota Motor Corp.'s Prius hybrid car at a car dealer in New York, the United States. (Xinhua/Liu Xin)

CHICAGO, Feb. 5 (Xinhua) -- Rating agency Standard & Poor's warned Friday in Washington it may downgrade Toyota Motor Corp., as the company has lost about 30 billion U.S. dollars of its market capitalization in recent weeks.

Toyota continues to face fallout from its global recall of more than 9 million vehicles in two campaigns linked to questions of sudden unintended acceleration, Detroit News reported.

S&P said its new warning stemmed from "increased concern over the potential negative impact on Toyota's business risk profile of unfolding developments related to recent quality issues." Since Jan. 19, Toyota's stock is down more than 20 percent.

Toyota group suppliers Denso, Aisin and Toyota Industries also were put on notice of a downgrade in their investment grade bond ratings.

S&P said it expects to decide by mid-May whether to downgrade Toyota.

The ratings agency also noted new concerns about the braking systems on Toyota Prius vehicles. The third-generation models are under investigation in Japan and the United States by auto safety regulators.

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