Sharp Corp. Downgraded To 'B-' With A Negative Outlook On Difficulties In Recovery; 'B' Short-Term Rating Affirmed

Sharp posted significantly larger net losses in fiscal 2023 than we expected, for a second consecutive year, mainly due to a decline in earnings in its LCD panel business. The losses resulted in consolidated equity capital falling to about ¥150 billion. Sharp is likely to continue to register operating and net losses due to a delay in the recovery of its LCD business, significantly worsening its financial standing and leading thin equity capital to endure over the next six to 12 months. We lowered our long-term rating on Sharp to 'B-' from 'B+' and affirmed our short-term rating at 'B'. The negative outlook reflects our view that recovery prospects for its device businesses, including LCDs, remain uncertain, meaning the company's

...May 20, 2024 - Sharp posted significantly larger net losses in fiscal 2023 than we expected, for a second consecutive year, mainly due to a decline in earnings in its LCD panel business. The losses resulted in consolidated equity capital falling to about Ñ150 billion. - Sharp is likely to continue to register operating and net losses due to a delay in the recovery of its LCD business, significantly worsening its financial standing and leading thin equity capital to endure over the next six to 12 months. - We lowered our long-term rating on Sharp to 'B-' from 'B+' and affirmed our short-term rating at 'B'. - The negative outlook reflects our view that recovery prospects for its device businesses, including LCDs, remain uncertain, meaning the company's financial standing and capital structure is likely to deteriorate further. TOKYO (S&P Global Ratings) May 20, 2024--S&P Global Ratings today said that it has lowered to 'B-' from 'B+' its long-term issuer credit rating on Sharp Corp. The outlook...

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