S&P lifts LG Electronics view to positive

Standard & Poor's said it revised the outlook on LG Electronics Inc. to positive from stable.

The agency also said it affirmed the company's BBB- long-term corporate credit and debt ratings.

S&P also said it assigned a BBB- rating to its proposed $2 billion medium-term note program.

The outlook revision reflects an expectation that LG Electronic's strengthening position in the global smartphone market and improving demand for its display panels will enhance its operating performance over the next 12 months, the agency said.

The agency said it expects the company to gradually improve its competitiveness in the global smartphone market on the back of fairly good hardware competitiveness and vertical integration, S&P said.

The company can effectively manage its operating efficiency and profitability in its other consumer electronics businesses, the agency said.

Nonetheless, S&P said it believes that intense competition and rapid changes in technology in the global smartphone market pose significant downside risks to the company's profitability given its limited global market share.

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