S&P: Sharp, Pioneer unchanged

Standard & Poor's said that the business and capital alliance between Sharp Corp. (A/stable/A-1) and Pioneer Corp. (BBB-/negative) would have no direct impact on the ratings on the companies, though the companies would benefit from the alliance over the medium-to-long term.

According to the plan announced by the companies, Pioneer will issue new shares on Dec. 20, which will be allocated to Sharp at ¥41.4 billion, the agency said.

Pioneer is expected to benefit from this alliance by enhancing the development of its product lineup in its stagnant home electronics business, the agency noted.

However, S&P said it believes that it will take a while to stabilize profits and enhance competitiveness so it may take some time before benefits from the alliance become apparent.

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