“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.”