S&P: Asahi Glass negative

Standard & Poor's said it revised to negative from stable the outlook on its A long-term corporate credit rating on Asahi Glass Co. Ltd.

At the same time, the agency said it affirmed the A long-term corporate credit and senior unsecured ratings and A-1 short-term corporate credit rating on the company and its subsidiaries.

The agency said the outlook revision reflects its view that earnings in the company's core flat panel display business have been deteriorating significantly, and that the prospect of near-term recovery is low.

In addition, according to S&P, the company plans to increase capital expenditures despite its overall stagnant earnings, and S&P said it believes that the deterioration of the company's financial profile is likely to extend over the next one to two years.

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