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LG Chem attains ?A-? credit rating from S&P

Standard & Poor’s has raised the long-term credit rating of LG Chem, the nation’s leading chemical firm, by a notch to “A-”, citing stable profitability and strong market position.

“The rating on LG Chem reflects its strong market position, well-diversified business portfolio, and the company’s solid and stable profitability,” Standard & Poor’s Ratings Services said.

LG Chem has reduced its debt ratio to 63 percent in the third quarter of this year, down from the 78 percent in 2009. It also posted a 11.2 percent increase in the third quarter’s operating profit compared to the same period a year earlier.

The chemical firm stands as a global leader in lithium-ion batteries for electric vehicles. It supplies to major automakers such as Renault, General Motors and Ford.

Standard & Poor’s cited possible risks related to “vulnerability to oil prices and currency fluctuations,” but was overall positive toward the firm’s business outlook.

LG Chem on Nov. 19 received a similar boost from Moody’s, which raised its credit rating on the chemical company by one notch to “A3.”

www.koreaherald.com