S&P cuts Tepco's credit rating to "junk"

[Poll_Blind]

From IBTimes

Ratings agency Standard and Poor's cut its credit rating on Tokyo Electric Power (9501.T) to junk status on Monday, saying the utility's lenders were more likely to be forced to write off debt as part of a plan to compensate victims of an ongoing nuclear crisis.

S&P said it had lowered the long-term credit rating of Tokyo Electric, one of the most active bond issuers in Japan, to B+ from BBB, while cutting the rating on the utility's secured bonds to BB+ from BBB.

The ratings agency said it viewed a default on the utility's 5 trillion yen ($62 billion) in corporate bonds as less likely than a restructuring of its bank debt.

Japan's government earlier this month agreed to set up a fund with taxpayer money to help Tokyo Electric, known as Tepco, avoid insolvency and compensate victims of the radiation crisis at its Fukushima Daiichi nuclear plant.

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PB

[ChoralScholar]

1. I feel for ya, Tepco. I have the same credit rating. :)

[Art_from_Ark]

2. After I get through paying the increased electric rates

and Japanese taxes to pay for this fiasco, I'll have the same credit rating as well :(

[Poll_Blind]

3. Kick for the morning crowd.

:kick:

PB