Summary: Sharp Corp.

The 'CCC+' long-term corporate rating reflects our view that Sharp is more likely than previously to ask its main lender banks for support in a form we define as 'SD' (selective default), such as a debt-for-equity swap, modifications to existing debt, or a debt waiver. Our ratings on Sharp have heavily reflected support from its main lender banks on the basis of our analysis of the company's financial profile and liquidity. According to media reports, Sharp will fail to register huge extraordinary losses in fiscal 2014 (ending March 2015) and plans to ask its main lender banks for a debt-for-equity swap. We believe financial market conditions for Sharp may deteriorate further, because credit default swaps have widened owing to the

...The '###+' long-term corporate rating reflects our view that Sharp is more likely than previously to ask its main lender banks for support in a form we define as '##' (selective default), such as a debt-for-equity swap, modifications to existing debt, or a debt waiver. Our ratings on Sharp have heavily reflected support from its main lender banks on the basis of our analysis of the company's financial profile and liquidity. According to media reports, Sharp will fail to register huge extraordinary losses in fiscal 2014 (ending March 2015) and plans to ask its main lender banks for a debt-for-equity swap. We believe financial market conditions for Sharp may deteriorate further, because credit default swaps have widened owing to the company's worsening business performance. As a result, we see a greater likelihood of Sharp approaching its main lender banks for support in a form we define as '##', such as a debt-for-equity swap, modifications to existing debt, or a debt waiver. Sharp's earnings...

Summary