(사진= LG디스플레이)

 

[Alpha Biz=(Chicago) Reporter Paul Lee] LG Display's credit rating, which has been struggling with a deficit of 1 trillion won in the first quarter alone, has been downgraded from A+ to A. It has been two months since the March rating outlook was lowered from 'stable' to 'negative'.

The Korea Enterprise Evaluation said on December 12 that LG Display's credit rating has been lowered from A + (negative) to A (positive). In March, Han Ki-pyeong also lowered the company's rating outlook from A + (stable) to A + (negative).

Han Ki-pyeong cited poor performance as a reason for the downgrade. In the first quarter of this year, LG Display's sales fell 31.8% year-on-year to 4.4111 trillion won. Operating losses reached 1.984 trillion won, accounting for half of last year's annual deficit (2.85 trillion won).

Analysts say that the burden of borrowing has also intensified due to poor performance. At the end of March this year, debt ratios and debt dependence rose to 248.0% and 46.9%, respectively, worsening from a year ago (159.3%, 34.4%).

 

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