[Alpha Biz=(Chicago) Reporter Kim Jisun] The negative outlook of the credit rating industry and the financial investment industry for LG Display, a major affiliate of LG Group, is spreading.
Three domestic credit rating agencies (Korea Corporate Rating, Korea Credit Rating, and Nice Credit Rating) have all recently lowered their credit rating forecasts. The move comes as both the financial situation and business conditions have worsened.
As a result, LG Display's credit rating for unguaranteed bonds (corporate bonds), which is currently A+, may be downgraded to A0. Securities firms expect LG Display to post operating losses of more than KRW 1.3 trillion this year.
The operating loss forecast increased by more than 30 billion won from a month ago. Stock prices also fell by nearly 10% during the month.
LG Display suffered more than 2 trillion won in operating losses last year, and LG Electronics is the largest shareholder. LG Display is expected to be a sore finger for the entire group this year.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
