NICE Investors Service Upgrades LG CNS Long-Term Credit Rating to 'AA/Stable'

On May 19, NICE Investors Service announced that it has upgraded the long-term credit rating of LG CNS from 'AA-/Positive' to 'AA/Stable'.

NICE Investors Service cited several reasons for this upgrade: continued expansion in scale and improvement in profitability driven by growth in the cloud and artificial intelligence (AI) sectors; the expectation of strong operating profitability; and enhanced financial stability following the initial public offering (IPO).

LG CNS recorded sales of 6 trillion won in 2024, a 6.7% increase from the previous year, and first-quarter sales of 1.2 trillion won in 2025, up 13.2% year-on-year. NICE Investors Service stated, "The cloud and AI sectors grew by 15.8% and 30.1%, respectively, driving the overall sales growth," and added, "Given LG CNS's capabilities as a managed service provider (MSP) and the continuously expanding market size, it is expected that the company will be able to maintain its increased sales volume."

The agency also commented, "LG CNS continues to deliver strong operating profitability through growth in high-margin sectors such as cloud and company-wide cost efficiency measures," and added, "With ongoing increases in demand for AI and cloud-based services, the company is expected to sustain strong operating profitability from a mid- to long-term perspective."

Additionally, NICE Investors Service pointed out that LG CNS's free cash flow stands at a stable level of 679.3 billion won, noting, "The company raised approximately 599.7 billion won through its IPO in January 2025." The agency further highlighted, "Compared to the end of 2024, the company's debt ratio improved from 112.2% to 79.5% in the first quarter of 2025, and its net cash and cash equivalents increased from 469.4 billion won to 1.3308 trillion won. Based on this, the company is expected to be able to respond to any extraordinary investment needs in the future, leveraging its cash flow generation capacity and liquidity reserves."

NICE Investors Service plans to closely monitor whether LG CNS can maintain its growth trajectory, as well as the company's ability to generate cash and uphold its financial structure in the event of extraordinary funding needs such as equity investments, and will consider these factors in future rating reviews.