Fitch affirms LG Electronics

Fitch Ratings said it affirmed LG Electronics Inc.'s long-term foreign- and local-currency issuer default ratings at BBB with negative outlook.

The negative outlook reflects LGE's recent poor operating results and the view that the company's credit profile is likely to remain weak in the short term despite ongoing improvements in its core businesses, according to the agency.

LG's leverage, of gross debt to operating EBITDAR, rose to 4.3x at the end of 2011 from 3.8x at end of 2010.

Fitch said it expects LG's profitability and financial profile to slowly improve beginning in 2012.

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