Moody's downgrades troubled Sharp's ratings

Sep 05, 2012

(AP)—Moody's Investors Service has downgraded Sharp's short-term ratings to the lowest "Not Prime" category, citing the Japanese electronics maker's debts and price drops in its main product, liquid-crystal displays.

. is struggling, losing 138 billion yen ($1.8 billion) in the latest quarter through June, and is wooing investment from Hon Hai Group of Taiwan.

Moody's said Wednesday the possible capital injection could shrink because Sharp stock has plunged recently.

Moody's said other measures in the works, such as job cuts, reducing inventory and selling assets, will take time.

As of June, Sharp has racked up 700 billion yen ($9 billion) in short-term debt, according to the U.S. ratings service.

It said earnings from panels and TVs are expected to be weak, making a near-term upgrade unlikely.

Explore further: Global pharma firms grilled about tax in Australia

0 shares

Related Stories

Sharp to cut 5,000 jobs as quarterly loss worsens

Aug 02, 2012

(AP) — Japanese electronics maker Sharp Corp. is slashing 5,000 jobs over the next year, or nearly 9 percent of its global workforce, after its quarterly loss ballooned from a year earlier.

Sharp shares hit by reports of Hon Hai deal rethink

Aug 06, 2012

Shares in Japan's Sharp, which slumped 28 percent at the end of last week after a poor earnings report, fell further Monday after Taiwan's Hon Hai Precision said it would renegotiate a deal to invest in it.

Sharp shares jump on asset sale, investment reports

Aug 17, 2012

Sharp Corp. shares jumped on Friday after a frenzy of reports said the troubled Japanese consumer electronics giant would sell key operations -- and court new investment -- as it struggles to survive.

Sharp annual profit more than quadruples

Apr 27, 2011

(AP) -- Sharp said its annual profit more than quadrupled due to brisk demand for liquid crystal display screens but warned the earthquake and tsunami that hit Japan last month will have a "broad" impact on its business.

Recommended for you

Hewlett-Packard moves forward with plan to split in two

5 hours ago

Hewlett-Packard is moving forward with plans to split into two companies, filing paperwork to create a new entity that will sell commercial technology, while a separate spinoff will sell personal computers and printers.

Global pharma firms grilled about tax in Australia

21 hours ago

The world's top pharmaceutical companies Wednesday told an Australian parliamentary hearing they were compliant with local and international laws, despite claims they are charging higher prices to minimise tax.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.