S&P upgrades Sharp

S&P said it raised the long-term corporate credit rating on Sharp Corp. to CCC+ from CCC.

The agency also said it kept rating on CreditWatch with positive implications.

S&P also said it maintained the positive watch on the company’s C short-term corporate credit and commercial-paper program ratings and CCC+ long-term senior unsecured debt rating.

The agency also said it raised the long-term corporate credit rating on Sharp’s subsidiary, Sharp International Finance (U.K.) plc to CCC+ from CCC and kept the rating on positive watch.

Also on positive watch was Sharp International’s C short-term corporate credit and commercial-paper program ratings.

The upgrade reflects more clear confirmation that Sharp’s creditor banks intend to maintain their supportive stance toward the company, as evidenced by updated agreements on existing syndicated loans, S&P said.

The updated agreements include lower interest rates and longer repayment dates, the agency explained.

The positive watch reflects that Sharp’s financial base is likely to improve as a result of a capital injection from Hon Hai Precision Industry Co. Ltd., along with a degree of stabilization of Sharp’s LCD business within the Hon Hai group, S&P added.

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