S&P upgrades LG Electronics to BBB

Standard & Poor's said it raised the long-term corporate credit and debt ratings on Korea-based global consumer electronics manufacturer LG Electronics Inc. to BBB from BBB-.

The outlook is stable.

"The upgrade reflects our expectation that LGE will gradually improve measures of its operating and financial performance over the next 12 months, reflecting its strengthened market position, particularly in the smartphone market, and good business diversity," S&P credit analyst JunHong Park said in a news release.

"In spite of intense competition in its major businesses, LGE is modestly improving its business diversity and the competitive position of its smartphone business as a result of good vertical integration and fairly good hardware competitiveness. Accordingly, we have revised the anchor for LGE to bbb from bbb-, reflecting the company's strengthened business risk profile."

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