Toshiba Risk Goes From Worst to Best as Accounting Storm Fades

The cost to insure Toshiba‘s debt against nonpayment dropped 12 1/2 basis points since Aug. 3 to 105, according to CMA prices. It‘s the best performer on the Markit iTraxx Japan credit-default swap index, a turnaround from mid-July when it posted the biggest increase in risk in the week on expectations of writedowns due to irregularities. The Japan gauge has climbed six basis points in the past month.

The manufacturer of chips and nuclear reactors released earnings on Monday after it delayed them last week on the discovery of new accounting irregularities related to a U.S. unit‘s construction project. The company said it posted a net loss of 37.8 billion yen($317 million) in the fiscal year ended March 31.