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(Photo by Kaisuke Ohta)
Toshiba in turmoil

Toshiba's lenders see improved outlook for struggling company

Large banks assume bigger role as smaller peers cut their exposure

Nikkei staff writers | Japan

TOKYO -- The major Japanese banks that shoulder a growing share of lending to Toshiba may upgrade their internal ratings of the troubled technology company in a reflection of its progress back toward financial health, but doubts surrounding plans to sell its memory chip unit are a source of concern.

Top two lenders Sumitomo Mitsui Banking and Mizuho Bank held around 210 billion yen ($1.92 billion) each in outstanding loans to Toshiba as of Dec. 31, and Sumitomo Mitsui Trust Bank held about 135 billion yen. The combined figure accounts for 62% of the overall 900 billion yen in loans owed by Toshiba, a share that grew by 16 percentage points over 2017's last three months. The trio's outstanding lending grew by 220 billion yen over that period, as Toshiba tapped 680 billion yen in credit lines to secure necessary funding at the end of the year.

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