Moody's lowers Toyota credit rating over profit concerns

[Omaha Steve]

Source: Bloomberg

The carmaker's problems stem from the recall of more than 8 million vehicles, possibly billions in lost sales and repar costs, and pending lawsuits.

TOKYO
Toyota Motor Corp.'s credit rating was cut by Moody's Investors Service because it expects profit at the carmaker to stay at "a low level" through at least 2012.

Moody's downgraded Toyota to Aa2 from Aa1, the ratings company said in a Thursday statement.

The world's largest carmaker is struggling to recover its reputation after recalling more than 8 million vehicles globally and may face at least $2 billion in lost sales and warranty repairs because of the problems, it has said. Toyota is also subject to 180 consumer and shareholder lawsuits stemming from the recalls.


Read more: http://www.latimes.com/news/la-fiw-toyota22-20100422,0,6826953.story