On the 24th, international credit rating agency Moody's maintained Samsung Electronics' senior unsecured bond credit rating at 'Aa2.' However, the outlook on the credit rating was revised down from 'stable' to 'negative.'
Aa2 is the third highest rating in Moody's credit rating system, following Aaa and Aa1, corresponding to South Korea's national credit rating.
Moody's noted that Samsung Electronics holds a 'strong market position and brand' in most of its core institutional sectors, including memory, display, mobile, and consumer electronics, and retains a high level of cash assets, which allowed it to maintain the Aa2 rating.
However, Moody's explained, 'The uncertainty about regaining technological leadership in the memory chip industry, particularly in AI chips, has increased, and it reflects the expectation that profitability will remain at a moderate level over the next 12 to 18 months.'
The credit rating outlook refers to the potential for future changes, which is different from a change in credit rating itself. There is no actual financial impact.
Moody's added, 'If Samsung Electronics can regain its technological leadership in the semiconductor institutional sector and restore its operating profit margin to 13 to 14 percent while maintaining its current sound financial position, the credit rating outlook could be changed to stable.'