Moody’s revises LG Chem view to negative

Moody's Investors Service said it revised LG Chem, Ltd.'s outlook to negative from stable but affirmed the company's A3 issuer and senior unsecured ratings.

"The change in LG Chem's outlook to negative reflects an increasing likelihood that the company's financial leverage will remain elevated over the next one to two years, given the prolonged weakness in its petrochemical earnings and substantial debt growth to fund its large capital spending," said Wan Hee Yoo, a Moody's vice president and senior credit officer, in a press release.

The agency noted LG Chem’s adjusted debt/EBITDA rose to about 3.2x in 2023 from 2.4x in 2022. Even with strong earnings growth in 2024 to 2025, Moody’s projects the company's financial leverage will probably stay elevated at 3.3x-3.6x.

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