TOKYO, Japan (CNN) -- Moody's, the international ratings agency, downgraded Toyota and its subsidiaries by one notch Thursday over the automaker's capacity to repay debt.
The prior rating was Aa1; it is now Aa2.
The rating, while still relatively strong, shows the ratings agency's concern over the worldwide Toyota recalls.
Moody's also cited profitability concerns over the looming litigation in the United States.
"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."
Toyota also saw its ratings plummet in the annual Forbes Magazine list of the world's leading companies. Last year, Toyota was ranked number 3.
This year, it is number 360.
Toyota (TM) did not issue a comment about the magazine listing.
The company is bringing its AmazonFresh service to New York for the first time. More
Economists concerned over rapidly rising corporate debt levels in China are sounding the alarm, warning that major changes are needed to avoid an increase in "zombie" banks and firms. More
As North Dakota's oil boom rages on, the droves of job seekers who have flocked there over the past few years are finally starting to move their spouses to the area and settle down. The result? Lots of babies. More