S&P puts Sharp on positive watch

Standard & Poor’s said it revised the CreditWatch with negative implications to positive on Sharp Corp.’s CCC long-term and C short-term corporate credit ratings, CCC+ long-term debt ratings and C commercial-paper program ratings.

The positive watch also applies to the CCC long-term and C short-term corporate credit ratings and C commercial-paper program ratings on Sharp International Finance (U.K.) plc.

The watch revision follows news that Sharp will issue new shares through third-party allocations totaling ¥388.8 billion to Hon Hai Precision Industry Co. Ltd. and its group companies by Oct. 5, 2016, S&P said.

Hon Hai also announced it would acquire Sharp’s shares, the agency said.

Despite significant deterioration in Sharp's earnings, the company’s financial standing is expected to improve materially if the capital increase occurs as planned, S&P said.

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