Standard & Poor's yesterday placed its ratings on Nippon Sheet Glass on CreditWatch with negative implications, indicating a review for possible downgrade, a day after Japan's second-biggest glassmaker said it was in talks to take over UK-based Pilkington.

The credit ratings agency said NSG could require up to Y300bn ($2.6bn) to fund the acquisition, which would negatively affect the company's financial profile by worsening its credit profile.