Fitch upgrades LG Electronics

Fitch Ratings said it upgraded LG Electronics Inc.'s long-term foreign- and local-currency issuer default ratings and senior unsecured rating to BBB from BBB-.

“The upgrades reflect Fitch's expectation of improving operational stability due to termination of its handset business, expected turnaround in its vehicle component solutions (VS) division and sustained high-single-digit margin in its home-appliance business,” the agency said in a press release.

Fitch said it sees LG improving its EBIT margin to 6% and gradually deleveraging to 1.6x in 2021 from 2.2x in 2020.

The outlook is stable.

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