S&P Global Ratings raised its outlook on LG Electronics' (KRX:066570) BBB credit rating to positive from stable, citing expectations of stronger financial prospects and lower debt levels ahead, according to a note by the ratings agency on Tuesday.

The upgrade marked the first such instance since October 2022. LG Electronics is projected to generate strong cash flow, driven by steady home appliance earnings and a recovery at affiliate LG Display (KRX:034220). The recovery is expected on the back of higher sales of organic light-emitting diode (OLED) panels, S&P Global said.

Shares of LG Electronics fell more than 1% in recent trade, while those of LG Display declined nearly 1%.