Toshiba and NEC hit by downgrade

Slumping profits take their toll...

The on-going economic slump has forced financial watchers Moody's to downgrade both Toshiba and NEC.

It has cut Toshiba from an A3 rating to Baa1 and added that the company's outlook looks negative. Shrinking profits in the company's PC section have taken a toll on overall group profits.

NEC has also been sliced - from Baa1 to Baa2 - based on the continuing decline of the company's profits and the delayed restructuring of its DRAM unit.