Moody's cuts LG Electronics view to stable

Moody's Investors Service said it changed to stable from positive the outlook for LG Electronics Inc.'s Baa3 issuer rating and senior unsecured rating.

The outlook change was prompted by the rapid decline in global discretionary consumer spending, which had resulted in a sharper than expected erosion in LG's profitability for the quarter that ended December 2008, Moody's said.

The severe drop in consumer spending in the United States and Europe has more than offset the growth in developing countries, the agency said.

Higher marketing expenses - in response to the weak demand - and falling average selling prices continue to pressure margins, Moody's added.

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