A maturing market and intensifying competition in Sharp's main LCD business have fueled a price drop exceeding assumptions we made at the beginning of fiscal 2015, substantially hurting the company's ability to generate earnings, and therefore we see a heightened possibility of the company's operating performance in fiscal 2015 falling far short of our assumptions. We think that Sharp will need to restructure existing debt in the next six to 12 months as it progresses a sweeping plan to restructure its LCD business. We see at least a one-in-two likelihood that Sharp may have difficulty meeting its financial commitments in this period, and we consider that any debt restructuring may take the form of an 'SD' (selective default) under our
