Fitch lowers LG Electronics

Fitch Ratings said it downgraded LG Electronics Inc.'s long-term foreign- and local-currency issuer default ratings and senior unsecured ratings to BBB- from BBB.

The outlook is stable.

Fitch said the downgrade reflects LG Electronics' continued weak operating margins and thin free cash flow generation that are not commensurate with a BBB rating despite its improved operating result in 2012.

Fitch said it expects free cash flow to stay weak due to intense price competition and heavy investment needed to develop new products. This will restrict the company's ability to deleverage, the agency added.

© 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.