S&P upgrades LG Electronics' long-term credit rating for first time in 12 years

LG Electronics' logo is seen during the World IT Show in Seoul on April 22. [AP/YONHAP]

S&P Global Ratings raised LG Electronics' long-term credit rating one notch to BBB+ from BBB on Tuesday, with a stable outlook, the company said Wednesday. It is the first time the agency has upgraded the rating in about 12 years.

S&P tied the upgrade to the strength of LG's core businesses and a turnaround at affiliate LG Display. The stable outlook reflects the agency's expectation that LG's "core business competitiveness will support credit strength, generate strong free cash flow, and reduce debt," it said.

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