S&P shifts LG view to positive

S&P said it revised LG Electronics Inc.’s outlook to positive from stable and affirmed its BBB issuer and senior unsecured notes ratings.

“The outlook revision reflects our view that LGE's operating performance will strengthen over the next one to two years. The company has reported robust operating performance despite the economic challenges posed by the Covid-19 pandemic. Its operating income grew 31% to Korean won (KRW) 3.2 trillion in 2020, and then quarterly operating profit reached a record high of KRW 1.5 trillion in the first quarter of 2021. We believe LGE will sustain its solid performance over the next 12-24 months, aided by strong performance at its cash cow businesses of home appliances and home entertainment,” S&P said in a press release.

The agency said it estimates LG will deliver annual operating profits of KRW 3.4 trillion-KRW 5 trillion during this time.

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