Peggy Furusaka Quotations

Spreads on Sanyo's bonds will probably stay high. Our uncertainty has heightened substantially towards Sanyo's management, corporate governance, financial accountability and the possibility of another major downward revision.

The fact they increased to 42 percent was a major step towards Wal-Mart's commitment to Seiyu and to the Japanese retailing market.

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.