Sharp today issued preferred securities to its two main lender banks to repay borrowings from each. We regard this transaction as a de facto debt-for-equity swap, which we define as 'SD' (selective default). We are lowering our long- and short-term corporate credit ratings on Sharp to 'SD'. We are revising to positive from negative the CreditWatch implications on our long- and short-term debt ratings on Sharp and on our long- and short-term corporate credit and short-term debt ratings on a Sharp overseas subsidiary. We expect to raise our corporate credit ratings on Sharp from 'SD' as early as tomorrow to reflect the company's credit quality. On June 30, 2015, Standard&Poor's Ratings Services lowered its long- and short-term corporate
