Fitch lifts Samsung Electronics

Fitch Ratings said it upgraded Samsung Electronics Co., Ltd.'s long-term foreign- and local-currency issuer default ratings to AA- from A+.

The outlook is stable.

The agency also upgraded Samsung’s senior unsecured rating to AA- from A+.

Fitch said the upgrade reflects its belief that Samsung’s credit quality is not significantly vulnerable to foreseeable events.

“This is due to the growing strength of the company's major businesses, which is driven by their strong global market positions, technology leadership, diversification, economies of scale and vertically integrated structure,” the agency said in a news release.

“Although the company is exposed to potential cyclicality in the semiconductor and display panel segments and the likely decline in handset margins in the medium-term, we expect operating and free cash flow generation to remain robust because of the strength and diversity of the company's businesses.”

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