Toyota Motors, likely to surpass General Motors as the biggest motor company in the world by the end of 2008, has had its credit rating downgraded from AAA to AA. Fitch, one of the big three rating agencies is the first to cut Toyota's rating, but may not be the last as the Japanese company loses its status of being the only auto maker to have a triple A rating from all three top agencies Moody's, Fitch and Standard & Poor's.
"The negative developments in the industry are so substantial and fundamental that even the strongest player - Toyota - can no longer support a triple-A rating," said Tatsuya Mizuno, a Fitch analyst, in a report.
The new rating will surely affect Toyota's borrowing costs upward and should a new rating be put into effect another drop rather than an upswing is the expected result.
