Credit Rating

View LG Electronics’ global and domestic credit ratings from various credit rating agencies worldwide.

Global Credit Rating

Global Credit Rating
Rating Agency	Current Rating	Last Evaluation Date
Moody's	Baa3(Stable)	June 2017
S&P	BBB(Stable)	May 2017

Global Credit Rating
Rating Agency	Moody's
Current Rating	Baa3(Stable)
Last Evaluation Date	June 2017
Rating Agency	S&P
Current Rating	BBB(Stable)
Last Evaluation Date	May 2017

Rating Definitions of Moody's and S&P

Moody's has nine rating categories, from Aaa to C, and S&P has 10 rating categories, from AAA to D. Ratings from Aaa to Baa are considered investment-graded by Moody's, and ratings from AAA to BBB are considered investment-graded by S&P. When rating agencies evaluate a credit rating, they also attach a "rating outlook" to each rating. "Positive" means that a rating may be raised, "Negative" means that a rating may be lowered, and "Stable" means that a rating is not likely to change.

Rating Definitions of Moody's and S&P
Classification	Moody's	S&P	Definition
Investment Grade	Aaa	AAA	Highest quality
	Aa	AA	High quality (very strong)
	A	A	Upper medium grade (strong)
	Baa	BBB	Medium grade
Non-investment Grade	Ba	BB	Lower medium grade (somewhat speculative)
	B	B	Low grade (speculative)
	Caa	CCC	Poor quality (may default)
	Ca	CC	Most speculative
	C	C	No interest being paid or bankruptcy petition filed
	‐	D	In default

Rating Definitions of Moody's and S&P
Classification	Investment Grade
Moody's	Aaa
S&P	AAA
Definition	Highest quality
Moody's	Aa
S&P	AA
Definition	High quality (very strong)
Moody's	A
S&P	A
Definition	Upper medium grade (strong)
Moody's	Baa
S&P	BBB
Definition	Medium grade
Classification	Non-investment Grade
Moody's	Ba
S&P	BB
Definition	Lower medium grade (somewhat speculative)
Moody's	B
S&P	B
Definition	Low grade (speculative)
Moody's	Caa
S&P	CCC
Definition	Poor quality (may default)
Moody's	Ca
S&P	CC
Definition	Most speculative
Moody's	C
S&P	C
Definition	No interest being paid or bankruptcy petition filed
Moody's	-
S&P	D
Definition	In default

Domestic Credit Rating

Domestic Credit Rating
Rating Agency	Bond
Rating Agency	Current Rating	Last Evaluation Date
KIS	AA	May 2018
KR	AA	May 2018
NICE	AA	May 2018

Domestic Credit Rating
Rating Agency	KIS
Bond - Current Rating	AA
Bond - Last Evaluation Date	May 2018
Rating Agency	KR
Bond - Current Rating	AA
Bond - Last Evaluation Date	May 2018
Rating Agency	NICE
Bond - Current Rating	AA
Bond - Last Evaluation Date	May 2018

Bond Ratings Definitions

There are 10 rating categories for bond ratings, from AAA to D. While obligors in rating categories AAA to BBB are considered investment-graded, having more than adequate abilities to meet their financial commitments in a timely fashion, those in rating categories BB to C are believed to contain speculative characteristics in terms of their redemption stability. Obligors in category D are in default.

Bond Ratings Definitions
Rating	Definition
AAA	An obligor rated 'AAA' has unquestionable capacity to redeem its financial obligations, and holds extremely low investment risks.
AA	An obligor rated 'AA' has strong capacity to redeem its financial obligations, although its solvency is relatively weaker than the obligors in the AAA category.
A	An obligor rated 'A' has satisfactory capacity to redeem its financial obligations, although it is somewhat more susceptible to the adverse effects of changes in its business and economic environments than the obligors in the AA rating categories.
BBB	An obligor rated 'BBB' has moderate capacity to redeem its financial obligations, although its capacity is more likely to be weakened by the adverse effects of changes in its business and economic environments than the obligors in the A category.
BB	An obligor rated 'BB' currently has the capacity to redeem its financial obligations. However, it's redemption stability contains speculative characteristics that it cannot be guaranteed in the long-term.
B	An obligor rated 'B' is speculative in meeting its financial commitments. Adverse circumstantial changes are likely to impair the obligor's capacity to pay the interests.
CCC	An obligor rated 'CCC' is highly speculative in meeting its financial commitments.
CC	An obligor rated 'CC' is more speculative than the obligors in the CCC category.
C	An obligor rated 'C' has a high default risk and no capacity for redemption.
D	An obligor rated 'D' is in default.

Bond Ratings Definitions
Rating	AAA
Definition	An obligor rated 'AAA' has unquestionable capacity to redeem its financial obligations, and holds extremely low investment risks.
Rating	AA
Definition	An obligor rated 'AA' has strong capacity to redeem its financial obligations, although its solvency is relatively weaker than the obligors in the AAA category.
Rating	A
Definition	An obligor rated 'A' has satisfactory capacity to redeem its financial obligations, although it is somewhat more susceptible to the adverse effects of changes in its business and economic environments than the obligors in the AA rating categories.
Rating	BBB
Definition	An obligor rated 'BBB' has moderate capacity to redeem its financial obligations, although its capacity is more likely to be weakened by the adverse effects of changes in its business and economic environments than the obligors in the A category.
Rating	BB
Definition	An obligor rated 'BB' currently has the capacity to redeem its financial obligations. However, it's redemption stability contains speculative characteristics that it cannot be guaranteed in the long-term.
Rating	B
Definition	An obligor rated 'B' is speculative in meeting its financial commitments. Adverse circumstantial changes are likely to impair the obligor's capacity to pay the interests.
Rating	CCC
Definition	An obligor rated 'CCC' is highly speculative in meeting its financial commitments.
Rating	CC
Definition	An obligor rated 'CC' is more speculative than the obligors in the CCC category.
Rating	C
Definition	An obligor rated 'C' has a high default risk and no capacity for redemption.
Rating	D
Definition	An obligor rated 'D' is in default.

* Ratings between AA and B categories can be designated with a plus (+) or minus (-) sign according to their relative status within each generic rating category.