Moody's Upgrades LG Chem Credit Rating to 'A3'

[Asia Economy Reporter Lee Seon-ae] International credit rating agency Moody's announced on the 15th that it has upgraded LG Chem's corporate credit rating and senior unsecured bond rating from 'Baa1' to 'A3'. The credit rating outlook was presented as 'stable.'

Yoo Wan-hee, Deputy Head of Moody's, explained, "The upgrade of LG Chem's credit rating reflects the substantial funds raised through the recent IPO of LG Energy Solution last month," adding, "Based on this, LG Chem is expected to maintain solid financial indicators and considerable financial buffer capacity even while undertaking large-scale facility investments over the coming years."

He continued, "The outlook also reflects the expectation that LG Chem's large-scale investments will lead to business diversification," and added, "Consideration was given to the high visibility of sales in the rapidly growing battery industry."

Previously, LG Chem raised 12.7 trillion won through the initial public offering (IPO) of LG Energy Solution.

Meanwhile, Moody's also upgraded the senior unsecured bond rating of LG Chem's subsidiary LG Energy Solution from 'Baa1' to 'A3', with the rating outlook set as 'stable.'

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