Moody's Maintains Samsung Electronics Credit Rating at Aa2... Outlook Downgraded

On the 24th, international credit rating agency Moody's maintained Samsung Electronics' senior unsecured bond credit rating at 'Aa2'. However, the credit rating outlook was downgraded from 'stable' to 'negative'.

Aa2 is the third highest rating in Moody's credit rating system, following Aaa and Aa1.

Samsung Electronics announced preliminary consolidated results for the third quarter with sales of 67 trillion KRW and an operating profit of 2.4 trillion KRW, exceeding expectations by more than 2 trillion KRW. The photo was taken on the 11th at Samsung Electronics Seocho Building in Seoul. Photo by Jinhyung Kang aymsdream@

Moody's explained that Samsung Electronics maintains the Aa2 rating due to its "strong market position and brand" in most core business sectors such as memory, display, mobile, and home appliances, as well as its high cash assets.

Moody's stated, "However, uncertainty has increased regarding the recovery of technological leadership in the memory chip industry, especially in AI chips, and reflecting the expectation that profitability will remain at a moderate level over the next 12 to 18 months, the rating outlook has been downgraded."

The credit rating outlook indicates the possibility of future changes and is different from an actual credit rating change. It also has no immediate financial impact.

Moody's added, "If Samsung Electronics recovers technological leadership in the semiconductor sector and restores operating profit margins to 13-14% while maintaining its current sound financial condition, the credit rating outlook could be changed back to 'stable'."