Moody's: LG unchanged

Moody's Investors Service said it sees no immediate impact on LG Electronics' Baa2 rating and negative outlook following the company's announced plan to raise KRW 1 trillion in a rights issue.

The raising could provide additional financial flexibility and support for LGE's core businesses, Moody's said.

But the agency said it also expects continued volatility in operating profits through the first half of 2012.

The company's weak competitive position in the mobile segment remains evident, the agency said, and it does not expect a material turnaround at this business in the near term.

The TV business also was plagued with oversupply, keen competition and razor-thin margins, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.