Eroded profitability as a result of intensifying fierce global competition and persistent pressure on prices for its main products, especially liquid crystal display (LCD) panels and flat-panel TVs Ability of the agreement Hon Hai has signed to acquire Sharp, if it proceeds as planned, to materially improve Sharp's financial standing and to some degree stabilize its main LCD business (which experiences wide swings in profitability) using Hon Hai's customer base and supply chain More clear confirmation that Sharp's creditor banks intend to maintain their supportive stance toward Sharp, as borne out by agreements the company has updated on existing syndicated loans We will remove our ratings on Japan-based electronics company Sharp Corp. from CreditWatch after confirming an injection of capital
