Standard and Poor's downgraded its credit rating on Toyota Motor after the world's largest automaker reported its first ever annual loss and warned of worse to come.
S&P lowered its long-term corporate credit ratings on the company to "AA" from "AA+", with a negative outlook.
"The deterioration in global auto markets will continue to pressure Toyota's profitability and cash flow through at least the current fiscal year, and may delay a recovery in Toyota's operating and financial performance," S&P said. "Global auto demand will almost certainly remain depressed throughout calendar 2009, a situation that is likely to continue into 2010."
Toyota earlier reported a net loss of 436.9 billion yen (US$4.4 billion) for the year to March, worse than its own forecast and a dramatic turnaround from the previous year's record profit of 1.72 trillion yen.
For the current business year it is forecasting a net loss of 550 billion yen and an operating loss of 850 billion yen.
Copyright Agence France-Presse, 2009