LG Energy Solution Obtains First Global Credit Ratings… S&P BBB+ · Moody's Baa1

[Asia Economy Reporter Donghoon Jeong] LG Energy Solution received an excellent rating in its first international credit rating evaluation since its launch.

First, S&P rated LG Energy Solution's credit rating as BBB+ with a 'Positive' credit outlook. In its report, S&P stated, "LG Energy Solution is enhancing cost management and efficiency through accumulated experience in global battery production and economies of scale, and profitability improvement is expected over the next 2 to 3 years."

Moody's assigned a credit rating of Baa1 with a 'Stable' credit outlook. Moody's evaluated, "A large battery order backlog and the acceleration of global electric vehicle sales will make solid revenue growth visible."

The credit ratings granted this time indicate that the company is suitable for investment when comprehensively considering business prospects, future competitiveness, and financial structure. Major companies with similar ratings include Hyundai Motor Company and CATL.

In particular, compared to its main competitor CATL, the credit ratings are the same, but in S&P's outlook, CATL received a 'Stable' rating while LG Energy Solution received a 'Positive' rating, recognizing a higher possibility of a future credit rating upgrade.

With this evaluation, LG Energy Solution has not only secured a high corporate credit rating among major global stakeholders but also laid the foundation to raise large-scale investment funds under more favorable conditions in the future.

LG Energy Solution holds the largest customer portfolio among major global battery companies. Its order backlog is approximately KRW 310 trillion (as of Q2 2022). The company is steadily expanding its global market competitiveness by focusing company-wide capabilities on ▲quality capabilities ▲smart factories ▲value chain. In particular, it is concentrating on the North American market, which is expected to have the fastest growth, and plans to achieve more than triple annual sales and double-digit operating profit margins within the next five years.

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