April 26, 2024

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[THE INVESTOR] Global rating agency Moody’s Investors Service said on June 20 it has decided to revise up Samsung Electronics’ credit rating to Aa3 from the previous A1 in anticipation of the tech giant playing a leading role in the technology industry going forward.

“The upgrade reflects Samsung’s improved operating stability and robust cash flow, which are supported by its solidifying technological and commercial leadership in its key segments, as well as its exceptionally strong financial buffers against high capex needs and industry cyclicality,” the credit appraiser said.

It was the first time Moody’s had revised Samsung’s rating since granting it A1 status in 2005, market watchers said.

“Moody’s expects that SEC‘s strong brand and technological advantage will continue to drive the company’s leading market positions and high profitability across multiple segments at least over the next 2-3 years,” it added.

The agency said the chip business, which has emerged as Samsung’s main source of profit over previous quarters, is expected to continue play a key role in the firm’s performance for the next few years.

“The rating outlook is stable, which reflects Moody’s expectation that the company will maintain its technological and commercial leadership in its key segments, strong profitability and cash flows, and financial prudence,” it added.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)