Fitch lowers LG Electronics view to negative

Fitch Ratings said it revised LG Electronics Inc.'s outlook to negative from stable.

The agency also said it affirmed its long-term foreign- and local-currency issuer default ratings at BBB, along with its senior unsecured rating at BBB.

The outlook revision reflects the company's recent weak operating results and a view that its operational competitiveness is unlikely to recover significantly in the short term, Fitch said.

Although an unrealized foreign-exchange loss of KRW 110 billion was one of the key reasons for the weak third-quarter performance, the agency said it believes that the mobile-handset and flat-display panel businesses have failed to improve so far in 2011.

And continuing subdued economies are likely to lead to weak demand for the company's products, Fitch added.

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