S&P downgrades Sharp

Standard & Poor’s said it lowered the long-term corporate credit rating on Sharp Corp. to CCC from CCC+ and placed the rating on CreditWatch with negative implications.

The agency also said it placed Sharp’s CCC+ long-term debt ratings and C short-term corporate credit and commercial-paper program ratings on CreditWatch with negative implications.

The downgrade and negative watch placement reflects a view that an agreement between Sharp and Taiwan’s Hon Hai Precision Industry Co. Ltd. for Hon Hai to acquire shares in Sharp will take more time, the agency said.

Meanwhile, Sharp has syndicated loans with a due date of March 31 and fulfillment of these obligations may take a form defined as SD (selective default), S&P said.

The agency also said it lowered the long-term corporate credit rating on subsidiary Sharp International Finance (UK) plc to CCC from CCC+, which also was placed on CreditWatch with negative implications.

Sharp International’s short-term corporate credit rating of C and C commercial-paper program rating also were placed on negative watch.

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