Jun 28, 2011
Moody's Investors Service cut Toyota's credit rating one level to Aa3 today, the rating service's fourth highest rating.
The agency cited the company's slow slog towards profit recovery in the face of shrinking market share, a historically very strong yen, and high raw material prices.
Moody's said another downgrade was possible because Toyota's ratings "incorporate one notch of support from the country's banks and government, which are themselves under review for possible downgrade."
The company's May production levels still reflect the complete devastation wrought on the company, and the country, by the March 11 earthquake and tsunami, as worldwide production was still down 49.3% from a year ago.
Toyota said its production is up to 90% of normal levels now, and it plans to bring that number nearer to 100% in July.
Shares of Toyota Motor are trading up 0.4% at $80.06.
Toyota Motor has a potential upside of 15.4% based on a current price of $80.06 and an average consensus analyst price target of $92.4.
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