TOKYO: Troubled Japanese electronics maker Sharp is in "selective default" ratings agency S&P said today, the latest blow to the one-time giant as it struggles to repair a tattered balance sheet.
The move comes after Sharp announced that it was issuing preferred securities to its main lenders, instead of repaying loans that were due.
"We regard this transaction as a de facto debt-for-equity swap, which we define as 'SD' (selective default). Therefore, we lowered our issuer credit rating on Sharp to 'SD'," the agency said in a release.
"We also revised the CreditWatch implications on our ratings on Sharp's long-term debt and commercial paper (CP) program to positive from negative." read more here
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