Sharp Downgraded to CCC by S&P

S&P has further cut Sharp’s credit rating to CCC from CCC+, after the ratings agency said further drag in negotiations over Hon Hai’s takeover bid for the company may lead to Sharp “selectively defaulting” on the loans it received from Japanese banks. The struggling Japanese electronics maker agreed to a bailout by Hon Hai, better known as Foxconn, back in February which would involve issuing Y489bn of new stock to the Taiwanese group which would give it a 66 per cent controlling stake in Sharp. However, the deal stalled at the last minute after Sharp provided its rescuer with what Hon Hai called “new material information”, which people familiar with the matter said were Y300bn in potential liabilities. (The Financial Times)