{"id":39826,"date":"2026-06-03T04:45:09","date_gmt":"2026-06-03T04:45:09","guid":{"rendered":"https:\/\/www.europesays.com\/korea\/39826\/"},"modified":"2026-06-03T04:45:09","modified_gmt":"2026-06-03T04:45:09","slug":"sp-upgrades-lg-electronics-credit-rating-to-bbb-on-solid-core-business-growth","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/korea\/39826\/","title":{"rendered":"S&P Upgrades LG Electronics Credit Rating to BBB+ on Solid Core Business Growth"},"content":{"rendered":"

\"LGLG Electronics headquarters in Yeongdeungpo-gu, Seoul. Photo: Yonhap<\/p>\n

S&P Global Ratings raised LG Electronics’ (066570.KS) credit rating by one notch to “BBB+, Stable” from “BBB, Positive” on Tuesday.<\/p>\n

“We upgraded the credit rating based on our judgment that debt burden will decline and the financial structure will improve on the back of stable growth in core businesses,” S&P said. The agency added that “the stable outlook reflects expectations that LG Electronics’ core business competitiveness will lead to robust free cash flow generation and debt reduction.”<\/p>\n

S&P projected that “LG Electronics’ core businesses will continue to deliver solid performance over the next two years, supported by enhanced competitiveness in premium products and the expansion of subscription and business-to-business (B2B) operations.”<\/p>\n

Regarding the company’s flagship home appliance business, S&P assessed that “it will maintain stable profitability, given its firm foothold in the premium market, which is relatively less affected by economic cycles.” The agency also analyzed that “the subscription business combining differentiated products and services, along with the company’s push into emerging markets leveraging its brand competitiveness and service network, is further boosting growth in the home appliance business.”<\/p>\n

The media entertainment solutions business is also expected to generate modest earnings over the next one to two years. S&P said, “Replacement demand for premium products, including large organic light-emitting diode (OLED) TVs, will support growth, and the webOS platform-based business will continue its expansion trend.”<\/p>\n

On the vehicle components business, S&P assessed that continued growth and profitability improvement are achievable based on the strong market position secured in major product categories such as telematics and infotainment. In particular, the agency forecast that “a high order backlog will support stable revenue growth, and profitability could further improve as economies of scale take full effect.”<\/p>\n

“Debt will continue to decline under strict financial policies,” S&P said, projecting that “LG Electronics’ debt-to-EBITDA (earnings before interest, taxes, depreciation and amortization) ratio will fall to 1.2x in 2026 and 1.0x in 2027, from 1.6x in 2025.”<\/p>\n

S&P also explained that the improvement in earnings and the financial structure of LG Display, in which LG Electronics holds a 36.7% stake, contributed to the rating upgrade.<\/p>\n

This marks the first time S&P has upgraded LG Electronics’ credit rating in about 12 years, since 2014. S&P had previously raised the company’s credit rating outlook to “Positive” from “Stable” in October last year.<\/p>\n

Meanwhile, in January this year, Moody’s, another international credit rating agency, also upgraded LG Electronics’ credit rating by one notch to “Baa1, Stable” from “Baa2, Positive.” Last month, Korea Investors Service, a domestic credit rating agency, raised LG Electronics’ credit rating outlook to “AA Positive” from “AA Stable.”<\/p>\n","protected":false},"excerpt":{"rendered":"LG Electronics headquarters in Yeongdeungpo-gu, Seoul. Photo: Yonhap S&P Global Ratings raised LG Electronics’ (066570.KS) credit rating by…\n","protected":false},"author":2,"featured_media":39827,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[621],"tags":[24146,815,24147,315,2482,357,24149,24145,24148,10247],"class_list":["post-39826","post","type-post","status-publish","format-standard","has-post-thumbnail","category-lg-electronics","tag-bbb-rating","tag-ebitda","tag-home-appliance-business","tag-lg","tag-lg-display","tag-lg-electronics","tag-moodys","tag-sp-credit-rating","tag-vehicle-components","tag-webos"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/39826","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/comments?post=39826"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/39826\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media\/39827"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media?parent=39826"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/categories?post=39826"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/tags?post=39826"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}