S&P lifts LG Electronics view to stable

S&P said it revised the outlook on LG Electronics Inc. to stable from negative.

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

S&P also said it affirmed the BBB long-term issue rating on the company's senior unsecured medium-term notes program.

The outlook revision reflects an expectation that the company will maintain good operating performances and stable financial metrics over the next two years, owing to its strong market position and well-diversified business portfolio.

S&P said it anticipates that LG Electronics will sustain its strong performance in its home appliance segment and digital TV business.

LG Electronics has increased its revenue from premium products primarily due to its superior product quality, the agency added.

This has resulted in operating margins that were better than the industry average at about 10% in the company's home appliance and TV businesses during the first quarter of 2017 and about 7.5% in 2016, S&P said.

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