Moody's lowers LG Electronics to Baa3

Moody's Investors Service said it downgraded LG Electronics' Inc.'s issuer and senior unsecured ratings to Baa3 from Baa2 and the rating of its medium-term note program to provisional Baa3 from provisional Baa2.

The outlook is stable.

"The rating action reflects our view that any improvement in LGE's profitability at the operating level will remain below that which we have indicated as being commensurate with a Baa2 level. This is in view of intense competition in its mobile handset segment, average selling price (ASP) pressures in all segments, and the higher marketing expenditures needed to protect and expand its market share, particularly in mobile," Moody's vice president and senior analyst Annalisa DiChiara said in a news release.

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