Sharp has updated agreements on existing syndicated loans. We believe the terms and conditions of the updated agreements more clearly indicate that creditor banks maintain a supportive stance toward Sharp. We are raising our long-term corporate credit rating on Sharp to 'CCC+' from 'CCC' and are keeping the rating on CreditWatch with positive implications. Our short-term ratings and our long-term debt ratings remain on CreditWatch with positive implications. We will remove the ratings from CreditWatch after confirming Taiwan-based Hon Hai's payment for its purchase of Sharp shares. Any upgrade of Sharp is likely to be limited to one to two notches because of the company's weakened capacity to generate earnings. On May 17, 2016, S&P Global Ratings raised its long-term
