International rating agency Moody downgraded Toyota and its subsidiaries by one notch Thursday over the company’s recall woes and its trouble with the U.S. government. The prior rating of Toyota was Aa1, which has now been dropped to Aa2.
“We do not take this rating change lightly,” said Toyota spokesman Paul Nolasco. “We plan to aim for an improved rating by making the best management decisions we can with customer trust as our top priority.”
The rating is still relatively strong but the change shows the agency’s concern over the 8 million vehicles Toyota recalled worldwide.
Toyota’s rating also fell on the annual Forbes Magazine list of the world’s leading companies. It was number 3 last year and this year it fell to 360.
– By: Omar Rana