Fitch cuts rating on Japan's Sharp to junk
TOKYO (AFP) - Fitch Ratings dealt another blow to Japanese electronics giant Sharp on Friday, saying it cut the embattled Japanese electronics giant's credit rating to junk, after a similar move by rival Standard & Poor's.
The downgrade came after Sharp said on Thursday it would post a whopping US$5.6 billion (S$6.8 billion) annual loss while warning it had doubts about carrying on as a viable company.
Fitch said it slashed its view on the maker of Aquos-brand electronics by six notches to a rating of "B-", which means its credit rating was no longer considered a safe, investment-grade bet.
"The downgrade reflects growing risks to Sharp's liquidity position, reinforcing Fitch's view that the technology company will struggle to turn its business around," a Fitch statement said.