We will remove our ratings on Japan-based electronics company Sharp Corp. from CreditWatch after confirming an injection of capital from Taiwan-based electronics manufacturing services company Hon Hai Precision Industry Co. Ltd. (A-/Stable/--). In resolving the CreditWatch placement, we will examine the degree to which improved capitalization will lift Sharp's financial standing, the competitiveness of Sharp's LCD business and prospects to improve the business' profitability as a member of the Hon Hai group, and Hon Hai's degree of willingness to support Sharp. Nonetheless, given Sharp's weakened capacity to generate earnings, we believe a recovery in its stand-alone credit quality will be difficult. If we view Hon Hai's commitment to support Sharp as not very strong, any upgrade of Sharp may be
