On the 19th (local time), the international credit rating agency Moody's upgraded LG Electronics' credit rating outlook from 'stable' to 'positive.' The credit rating remains at Baa2.
The positive credit rating outlook indicates that, considering the current business structure and financial situation of the company, there is a high possibility of an upgrade in the credit rating in the future. It is the first adjustment to LG Electronics' credit rating and outlook by Moody's in four years since 2021.
Moody's noted, "Despite the increasing uncertainty in the business environment due to tariff increases and the weak demand for some products this year, LG Electronics will be able to manage its financial structure stably based on its ability to generate stable revenue and maintain the soundness of its financial indicators." It continued, "As the creditworthiness of LG Display, LG Electronics' display panel subsidiary, has improved, the factors that could lead to a downgrade of LG Electronics' credit have decreased."
Moody's stated, "LG Electronics' creditworthiness is supported by its global brand power, leading market position, diversification of its business, and geographical diversification." It added, "Although not reflected in this credit rating outlook, the ongoing initial public offering of its Indian subsidiary could also provide factors that further strengthen the company's financial indicators in the future."