S&P Forecasts Samsung Electronics' Earnings Slowdown in Second Half... Credit Rating 'Maintained'

[Asia Economy Reporter Park Sun-mi] Global credit rating agency Standard & Poor's (S&P) forecasted a slowdown in Samsung Electronics' performance in the second half of the year but assessed that maintaining the current credit rating is possible due to its solid semiconductor business and positive cash flow.

On the 1st, S&P stated about Samsung Electronics, "Samsung Electronics' performance in the second half is expected to slow somewhat due to inflationary pressures and weakened consumer sentiment," adding, "Decreased consumer spending may lead to declines in sales and profitability in Samsung's consumer electronics and display panel sectors."

However, it added, "Increased investment in corporate data centers and cloud servers will boost demand for server memory and non-memory semiconductors, which will somewhat help defend performance," and "Based on a solid semiconductor business, a well-diversified business portfolio, and a positive free cash flow trend, the credit rating can be maintained."

S&P estimated Samsung Electronics' discretionary cash flow this year to exceed 1 trillion KRW and maintained the long-term credit rating at 'AA-' with a stable outlook.

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