S&P Rates LG Energy Solution's Proposed Notes BBB

MT Newswires Live
Mar 13

S&P Global Ratings has placed a BBB long-term issuer rating on LG Energy Solution's (KRX:373220) proposed senior unsecured notes, according to a Friday release.

The issuance may include a senior unsecured green bond.

The notes' rating is similar to the Korean battery maker's long-term issuer credit rating, with a priority ratio of about 44%, below S&P's notching-down threshold of 50%.

The rating agency holds a negative outlook on the company, citing the risk of greater-than-expected weakness in its creditworthiness due to dampened demand for chemicals and electric vehicle batteries.

The company's rising energy system segment and lower capital investment should partly mitigate headwinds from weak EV sales volume in the US.

S&P expects the company's adjusted debt-to-EBITDA ratio to remain above the 3.5x downside threshold this year.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10