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Thai Floods Disrupt Factories at Home and Abroad

A Thai woman sits on an inflated tire as people leave flooded areas in Bangkok, Thailand, October 26, 2011.

A global rating agency says Thailand's severe floods are disrupting manufacturing in that nation, and hurting production of parts used by factories in other countries.

Thailand is a major production site for Japanese electronic and auto companies, turning out both finished products and parts needed for assembly elsewhere.

Two reports from Standard & Poor's Ratings Services Wednesday say their experts think the disruption will not last long enough to hurt the creditworthiness of major Japanese manufacturers like Toyota and Sony.

A Reuters news report said the Thai floods have closed Toyota, Nissan, and Honda factories for weeks. The story said a lack of parts is prompting Toyota to reduce some production in Japan, Indonesia, Vietnam, and the Philippines. Another report by French news agency AFP said a lack of parts forced Honda to close a plant in Malaysia.

Flooding disruptions are also prompting Sony to delay introduction of a key new product.

Some information for this report was provided by AFP and Reuters.