We think discussions on refinancing loans between Sharp and a syndicate of banks are progressing. We placed our 'B-' long-term issuer credit rating on Sharp and its overseas subsidiary on CreditWatch with positive implications; the short-term rating 'B' remains unchanged. We aim to resolve the CreditWatch placement if the refinancing takes place and after carefully examining Sharp's cash flow generation and liquidity outlook; we could raise the rating by one notch to 'B' at the time of resolution. Sharp's restructuring efforts since 2024 are progressing. This has reduced the risk of further deterioration in Sharp's earnings and financial base, advancing refinancing discussions with banks, in our view. We believe that successfully refinancing the loans, which account for over 80% of
