S&P: Sanyo unaffected

Standard & Poor's said its ratings on Sanyo Electric Co. Ltd. (BB-/stable) would not be affected by the company's final agreement to sell its mobile telephone business to Kyocera Corp.

The agency said that the effective date of sale is scheduled for April 1, adding that the business value has been agreed upon by both companies at ¥50 billion, although the final amount is subject to adjustments related to the amount of outstanding debt and the amount of cash and deposits to be transferred on the effective date.

S&P said that it considers the sale of the mobile telephone business, which is characterized by fierce competition and volatile profitability, to be a positive factor for Sanyo allowing it to enhance its business franchise and concentrate its management resources on its core businesses, particularly rechargeable batteries and solar cells.

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