Moody’s raises LG Electronics

Moody’s Investors Service said it upgraded LG Electronics Inc.’s issuer rating to Baa2 from Baa3.

“The upgrade reflects our expectation that following a significant improvement in 2020, LGE’s financial profile will remain solid over the next one to two years, driven by its steady sales and profitability and the improved operating performance of its 37.9%-owned affiliate LG Display Co., Ltd. (LGD),” said Gloria Tsuen, a Moody’s vice president and senior credit officer, in a press release.

The ratings also reflect LGD’s credit quality and the likelihood of LGE receiving financial support from parent LG Corp., if necessary, given LGE’s high importance to the group and its parent’s solid balance sheet and net cash position, the agency said.

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