S&P changes Sharp outlook to stable

Standard & Poor's said it revised the outlook on the B+ long-term corporate credit rating on Sharp Corp. and its overseas subsidiary, Sharp International Finance (U.K.) plc, to stable from negative.

At the same time, the agency affirmed the long-term corporate credit rating on Sharp at B+, the long-term senior unsecured debt rating at B and the short-term corporate credit rating and rating on the company's commercial paper program at B.

All ratings on Sharp International Finance were also affirmed.

S&P said the outlook revision reflects its view that the company's operating performance will continue to recover moderately thanks to significant cost reductions and a shift of its product mix toward small-to-midsize liquid crystal displays.

The revision also incorporates the agency’s expectation that improving operating performance is likely to support the company's stable banking relationships and reduce liquidity risk for the company over the next 12 months, despite the view that Sharp will continue to depend heavily on short-term borrowings.

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