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Toyota suffers credit rating drop

The Toyota Venza is showed during the Los Angeles Auto show

TEXT OF STORY

Scott Jagow: A company that's relatively stable, Toyota, had its debt rating downgraded by Fitch -- from Triple-A to double-A. More on that from Marketplace's Steve Henn.


Steve Henn: The appetite for new cars is awful. Pam Murtaugh a consultant who studies consumer demand says even the best cars aren't selling.

Pam Murtaugh: To pretend this is a slowdown is a mistake. If this is happening to Toyota, this is the auto industry driving off a cliff.

And the financial crisis hit Toyota twice. Recently, global investors looked for a safe place to stash their cash. Many of them chose Japan, and that pushed up the value of the Yen.

For Japanese exporters like Toyota, a strong Yen is actually bad news. It makes their products more expensive, and that pushes down sales. That's why Fitch, a credit rating service, cut Toyota's rating today.

And that make it more expensive for the company to borrow. Toyota stock price fell almost 5 percent in Tokyo on the news.

I'm Steve Henn for Marketplace.

About the author

Steve Henn was Marketplace’s technology and innovation reporter for the entire portfolio of Marketplace programs until December 2011.

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