LG Electronics outlook raised to positive - Moody\'s

Tag : electronics

MUMBAI (Thomson Financial) - Moody's Investors Service changed the outlook for Korea-based electronicsmanufacturer LG Electronics' 'Baa3' issuer rating and seniorunsecured rating to positive from stable, citing improvements inthe company's credit profile and balance sheet.
'We expect LGE's improved credit profile to prove sustainable overthe next few years,' Ken Chan, Moody's (nyse: MCO - news - people ) vice president said.
'Although the operating environment is expected to become morechallenging -- given the global economic slowdown and a potentialLCD panel industry downturn over the next 12-18 months -- LGE'shealthy balance sheet and the strong profitability in its handsetdivision should establish a buffer against such volatility,' headded.
Also, the company has shown fundamental improvements in itsoperating profile and developed more stringent financial managementpolicies, Moody's said.
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