Peggy Furusaka Unless Quotations

We anticipate a two-notch downgrade by all four rating agencies. Depending on the information disclosed at the interim announcement and thereafter, we foresee the possibility of deeper rating cuts unless the company can announce some plan to replenish its thin equity base relative to its debt and asset levels.

Unless some sort of financial support, capital injection or business tie-up materializes, we expect Sanyo's spread in the cash bond and protection premium in the CDS markets to stay wide.