S&P raises LG Electronics outlook to positive
S&P Global Ratings lifted its outlook for LG Electronics from stable to positive on Tuesday, the first such change in three years. The agency cited strong results in appliances and auto electronics, alongside cash from an Indian unit public offering and recovery at its affiliate, LG Display. Analysts expect better financial metrics within two years that could trigger another rating increase. Growth stems from data center cooling systems and vehicle parts backed by a 100 trillion won order book.
The February offering of Indian shares brought in 1.8 trillion won, which will reduce corporate debt. LG Display’s turnaround benefits the parent company through its 36.72 percent ownership stake. Moody’s Investors Service raised its assessment to positive in February, citing steady earnings and cash generation. The heating and cooling division continues expanding through energy-efficient products for commercial applications.
