S&P lowers LG Electronics to negative

Standard & Poor’s said it revised LG Electronics Inc.’s outlook to negative from stable and its BBB long-term corporate credit and debt ratings.

The outlook revision reflects an expectation that the company will experience heightened pressures on the operating performance of its major smartphone, digital TV and display panel businesses over the next two years due to intensifying competition, S&P said.

While the company is expected to maintain adequate profitability in 2015, there is a possibility that the company’s profitability could weaken over the next two to three years because of fierce competition from Chinese companies, saturated demand and declines in the selling prices of its key products, the agency said.

The rating also considers the company’s good business diversity and good market position in home appliances, display panels and TVs, the agency said.

© 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.