Moody's drops LG Electronics view to negative

Moody's Investors Service said it revised to negative from stable the outlook for LG Electronic's Baa2 issuer and senior unsecured debt ratings.

Two factors have driven the change in the outlook.

Firstly, the company's competitive position in its handset business has weakened considerably, Moody's said.

Secondly, the agency said it expects the company to face a major challenge in significantly turning around the operating performances of its different business segments in the near term, given an uncertain global economy and the resulting weakness in both its profitability and credit metrics.

Moody's added that it expects continued volatility in its operating profits, reflecting partly the ongoing weakness in its handset unit and the intense level of competition.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.