Sharp Corp. Long-Term Ratings Raised To 'BB-' From 'B+' On Vastly Improved Financial Standing; Outlook Positive

Sharp's earnings and cash flows are likely to continue to recover gradually in the next year or two thanks to steps to stabilize earnings in its main LCD business. Key financial ratios for Sharp have improved far beyond our assumptions and are likely to keep improving, supported by its efforts to strengthen cash flows. We are raising our long-term corporate credit and senior unsecured debt ratings on Sharp one notch to 'BB-' and are affirming our 'B' short-term ratings. The positive outlook reflects our view that key financial ratios for Sharp are highly likely to improve materially within a year if it conducts a buyback of preferred shares financed through a public offering of new common shares. TOKYO (S&P Global

...+ Sharp's earnings and cash flows are likely to continue to recover gradually in the next year or two thanks to steps to stabilize earnings in its main LCD business. + Key financial ratios for Sharp have improved far beyond our assumptions and are likely to keep improving, supported by its efforts to strengthen cash flows. + We are raising our long-term corporate credit and senior unsecured debt ratings on Sharp one notch to '##-' and are affirming our 'B' short-term ratings. + The positive outlook reflects our view that key financial ratios for Sharp are highly likely to improve materially within a year if it conducts a buyback of preferred shares financed through a public offering of new common shares. TOKYO (S&P Global Ratings) June 8, 2018--S&P Global Ratings today said it has raised one notch to '##-' from 'B+' its long-term corporate credit and senior unsecured debt ratings on Japan-based electronics maker Sharp Corp. We have affirmed our 'B' short-term corporate credit and commercial...

Ratings Action