미국 신용평가사 무디스(Moody's)는 13일 LG전자의 발행자 및 선순위부담보채무의 'Baa3' 신용등급 전망을 기존 "긍정적(positive)'에서 `안정적(stable)`으로 하향 조정했다.
이번 등급 전망 변화는 약 11억 달러 규모의 LG전자 채무에 영향을 미치게 된다.
무디스는 이번 등급 하향 조정의 배경으로 "급격한 세계 임의 소비지출 감소로 LG전자의 실적이 예상보다 빠르게 약화되었다"는 점을 들었다.
아래는 무디스의 발표문 전문.
Moody's changes outlook of LG Electronics to stable from positive
Approximately US$1.1 billion of debt securities affected
Hong Kong, February 13, 2009 -- Moody's Investors Service has changed to stable from positive the outlook for LG Electronics Inc's (LGE) Baa3 issuer rating and senior unsecured rating.
The outlook change has been prompted by the rapidly declining in global discretionary consumer spending, which had resulted in a sharper than expected erosion in LGE's profitability for the quarter ended December, 2008.
"The severe drop in consumer spending in the US and Europe has more than offset the growth in developing countries," says Ken Chan, a Moody's Vice President, adding, "Higher marketing expenses -- in response to the weak demand -- and falling average selling prices continue to pressure margins; accordingly, the company's projected credit metrics are more consistent with a low-Baa credit."
Although LGE has improved its competitiveness in the mobile communications segment, its consolidated financial performance has been undermined by weakness in the flat panel display segment. Therefore, Moody's believes that the overall profitability achieved in 2008 will not be sustainable over the next 12 months. The company's recent indication of a 20% sales drop in US dollar terms for 2009 clearly reflects the current difficult operating environment.
"While LGE will have more stringent cost controls, Moody's will continue to monitor closely the impact on profitability from changes in the operating environment, given low visibility ahead," says Chan.
At the same time, LGE's Baa3 rating is supported by its strong recognized brand, diversified product offering and track record of successful execution in its mobile communication segment.
Near-term upward rating pressure is limited in view of the dismal outlook for discretionary consumer spending and the resultant pressure on LGE's operating performance. However, prudent financial discipline and the ability to maintain its credit profile amid a difficult operating environment, such that its operating margin rises above 5% and Total Debt/Capitalization falls below 40-45%, would be positive for the rating.
On the other hand, negative rating pressure may arise if: 1) a more severe than expected downturn in the consumer electronics market affects the mobile communications and flat panel industries, materially weakening LGE's operating performance and financial profile, such that revenue drops by more than 20% in US dollar terms while the company fails to maintain positive operating margins for 2009; or 2) LGE pursues an aggressive investment policy such that Total Debt/Capitalization increases to over 55%.
The last rating action with respect to LG Electronics was taken on September 2, 2008, when its rating outlook was changed to positive from stable.
The principal methodology used in rating LG Electronics is the Asian Consumer Electronics Rating Methodology, which can be found at www.moodys.com in the Credit Policy & Methodologies directory, in the Ratings Methodologies subdirectory.
LG Electronics Inc, headquartered in Seoul, the Republic of Korea, is a leading company in the world consumer electronics market.
이번 등급 전망 변화는 약 11억 달러 규모의 LG전자 채무에 영향을 미치게 된다.
무디스는 이번 등급 하향 조정의 배경으로 "급격한 세계 임의 소비지출 감소로 LG전자의 실적이 예상보다 빠르게 약화되었다"는 점을 들었다.
아래는 무디스의 발표문 전문.
Moody's changes outlook of LG Electronics to stable from positive
Approximately US$1.1 billion of debt securities affected
Hong Kong, February 13, 2009 -- Moody's Investors Service has changed to stable from positive the outlook for LG Electronics Inc's (LGE) Baa3 issuer rating and senior unsecured rating.
The outlook change has been prompted by the rapidly declining in global discretionary consumer spending, which had resulted in a sharper than expected erosion in LGE's profitability for the quarter ended December, 2008.
"The severe drop in consumer spending in the US and Europe has more than offset the growth in developing countries," says Ken Chan, a Moody's Vice President, adding, "Higher marketing expenses -- in response to the weak demand -- and falling average selling prices continue to pressure margins; accordingly, the company's projected credit metrics are more consistent with a low-Baa credit."
Although LGE has improved its competitiveness in the mobile communications segment, its consolidated financial performance has been undermined by weakness in the flat panel display segment. Therefore, Moody's believes that the overall profitability achieved in 2008 will not be sustainable over the next 12 months. The company's recent indication of a 20% sales drop in US dollar terms for 2009 clearly reflects the current difficult operating environment.
"While LGE will have more stringent cost controls, Moody's will continue to monitor closely the impact on profitability from changes in the operating environment, given low visibility ahead," says Chan.
At the same time, LGE's Baa3 rating is supported by its strong recognized brand, diversified product offering and track record of successful execution in its mobile communication segment.
Near-term upward rating pressure is limited in view of the dismal outlook for discretionary consumer spending and the resultant pressure on LGE's operating performance. However, prudent financial discipline and the ability to maintain its credit profile amid a difficult operating environment, such that its operating margin rises above 5% and Total Debt/Capitalization falls below 40-45%, would be positive for the rating.
On the other hand, negative rating pressure may arise if: 1) a more severe than expected downturn in the consumer electronics market affects the mobile communications and flat panel industries, materially weakening LGE's operating performance and financial profile, such that revenue drops by more than 20% in US dollar terms while the company fails to maintain positive operating margins for 2009; or 2) LGE pursues an aggressive investment policy such that Total Debt/Capitalization increases to over 55%.
The last rating action with respect to LG Electronics was taken on September 2, 2008, when its rating outlook was changed to positive from stable.
The principal methodology used in rating LG Electronics is the Asian Consumer Electronics Rating Methodology, which can be found at www.moodys.com in the Credit Policy & Methodologies directory, in the Ratings Methodologies subdirectory.
LG Electronics Inc, headquartered in Seoul, the Republic of Korea, is a leading company in the world consumer electronics market.
