S&P Global Ratings has upgraded LG Electronics' (KRX:066570) long-term issuer and issue credit ratings to BBB+ from BBB, according to a recent release.

The group will lessen its debt and boost its financial base through the growth in home appliances and solid gains from subsidiary LG Display, S&P said.

The company will see better profitability over the next one to two years as LG Display transitions toward high-end OLED panels, the rating agency said.

The company has a robust lineup among premium products in its home appliance solution division, diversified services within its subscription segment, and rising penetration in its higher-margin business to business (B2B) division, S&P said.

LG Display will also further develop through an enhanced product mix, according to S&P.

The outlook is stable, stemming from S&P's belief that the company's core business competitiveness will anchor credit strength, yield solid free cash flow, and lessen debt.

Notable shifts in the company's debt-to-EBITDA ratio driven by its TV or home appliances businesses or market position across core segments could lead to future rating actions.