Outlook On Sharp Revised To Negative As COVID-19 Hobbles Recovery Momentum; 'BB-/B' Ratings Affirmed

The COVID-19 pandemic is likely to slow down the recovery of Sharp's operating performance significantly. With a delay in the recovery of earnings, the company's debt may remain at a high level and there is a one-in-three chance that the company's core financial ratios may not recover to levels commensurate with the ratings within the next year or so. We are revising the outlook on the long-term issuer credit rating on Sharp to negative from stable, and affirming the ratings at 'BB-/B'. We have affirmed our ratings on Sharp in light of the company's relative strength in its main liquid crystal display panel business, and the benefits of being a member of the group led by its parent, Hon Hai.

...May 25, 2020 - The COVID-19 pandemic is likely to slow down the recovery of Sharp's operating performance significantly. - With a delay in the recovery of earnings, the company's debt may remain at a high level and there is a one-in-three chance that the company's core financial ratios may not recover to levels commensurate with the ratings within the next year or so. - We are revising the outlook on the long-term issuer credit rating on Sharp to negative from stable, and affirming the ratings at '##-/B'. - We have affirmed our ratings on Sharp in light of the company's relative strength in its main liquid crystal display panel business, and the benefits of being a member of the group led by its parent, Hon Hai. TOKYO (S&P Global Ratings) May 25, 2020--S&P Global Ratings today said it has revised from stable to negative its outlook on Japan-based electronics maker Sharp Corp. and its overseas subsidiary Sharp International Finance (U.K.) PLC. We have affirmed the '##-' long-term issuer...

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