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.
As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.
Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.
Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.
Cheers to trustworthy journalism!
Give just $7/month to get your own KaiPA glass.