Friday, May 15, 2015

The note lowered two notches Sharp – BBC

The Standard & amp rating agency; Poor’s on Friday downgraded two notches to CCC-grade long-term Japanese electronics group Sharp who is forced to resort to banks and is now considered a very risky transmitter.

The pioneer crystal displays liquids (LCD) was already relegated to junk status and saw its lowered rating by three notches early March

But this time, the support of banks announced Thursday by Sharp is considered by S & amp;. P exchanged claims against the assets, which is considered by the agency as a “selective default”.

Strangled by nearly 10 billion euros in cumulative losses since 2011, Sharp has obtained from its banks receive the promise of 200 billion yen (1.5 billion euros) to pay off debts in exchange for the issuance of preference shares for the two institutions concerned, Mizuho and Mitsubishi UFJ.

“If Sharp shareholders approve the issuance of preferred securities at the General Assembly to come, we plan to reduce it to SD (selective default) Company notation” warned S & amp; P. The agency has accompanied the new appreciation of a negative outlook.

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