Fitch cuts Samsung, LG view to negative

In conjunction with ratings actions on the Asia-Pacific Technology sector, Fitch Ratings said it revised its outlook on Samsung Electronics Co., Ltd. and LG Electronics Inc. to negative from stable. Samsung's long-term foreign-currency issuer default rating is affirmed at A+. LG Electronics long-term foreign-currency issuer default rating is affirmed at BBB. The agency also said it maintained the Rating Watch negative Hynix Semiconductor Inc.'s B+-rated long-term foreign- currency issuer default rating and senior unsecured debt ratings.

The actions reflect Fitch's view that the negative impact stemming from the global economic slowdown on the three Korean technology names is likely to deepen as 2009 progresses.

The agency said does not expect Samsung Electronics and LG Electronics recent market share gains to result in improved profitability. Fitch said that concern over globally weak demand for consumer electronics products is a vitally more important consideration.

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