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Moody's assigns Baa1 to LG Energy
Moody's Investors Service said it assigned a first-time Baa1 issuer rating to LG Energy Solution, Ltd.
"LGES' underlying credit strength is primarily underpinned by its leading position in the global electric vehicle (EV) battery industry and strong growth prospects supported by favorable market demand and large order backlogs," said Wan Hee Yoo, a Moody's vice president and senior credit officer, in a press release.
However, the company’s credit strength is limited by its heavy capital spending from substantial capacity expansion, which will incur considerable debt and raises execution risks, the agency said.
"The rating also incorporates a two-notch uplift from LGES' underlying credit strength, based on our expectation that the company will receive strong parental support from LG Chem, Ltd. (A3 stable) in times of stress," Yoo added.
The outlook is stable.
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