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

[dipsydoodle]

1. Good name that

Not.

moody Adj. Suspicious, not genuine. E.g."Don't buy any watches off that crook, they're well moody."

[Kolesar]

2. Toyota is going to have to find something better than self loathing to offer their customers

Most Toyota buyers I know talk about how much they hate American companies when they talk about their cars. It is said as an unsolicited comment.

[Iowa]

3. Does anyone have any faith in these credit rating agencies anymore?

I sure as hell don't.

[JackRiddler]

4. Why does Moody's still exist? Why hasn't it gone the way of Arthur Anderson?