Large exposure to competitive and volatile liquid crystal display (LCD) business Weaker-than-industry-average and highly volatile profitability Major producer of LCD panels and flat-panel TVs, with advanced technology Heavy debt burden and continuing high dependence on short-term bank borrowings Rising borrowing costs and weakening EBITDA interest coverage Expected negative free operating cash flow (FOCF) because of weak operating cash flow and increasing capital spending Weak liquidity The negative outlook reflects Standard&Poor's Ratings Services' view that Japan-based electronics company Sharp Corp.'s earnings and financial standing are unlikely to recover materially in the next six to 12 months or so amid heightened risk of volatility in the earnings of its LCD business. The continued severe market and competitive environment lead us
