S&P: Sharp on negative watch

Standard & Poor’s said it placed the B+ long-term corporate credit and B issue ratings on Sharp Corp. on CreditWatch with negative implications.

The agency also said it affirmed the company’s B short-term corporate and commercial-paper program ratings on the company.

S&P also said it placed the B+ long-term corporate credit rating on its subsidiary, Sharp International Finance (U.K.) plc, on CreditWatch with negative implications.

The agency also affirmed Sharp International’s B short-term corporate and commercial-paper program ratings on the company.

The CreditWatch placement reflects the likelihood that Sharp’s earnings will fall far short of assumptions in the agency’s base-case scenario, S&P said.

Recent competition for securing orders from smart-phone makers has intensified among LCD panel makers beyond expectations, the agency said.

Therefore, the profitability of the small-to-midsize LCD business may become more volatile, S&P said.

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