LG CNS Credit Rating Upgraded to 'AA' by Korea Ratings

In a significant development, Korea Ratings has upgraded LG CNS's unsecured bond credit rating from "AA-/Positive" to "AA/Stable" as of May 9. This upgrade reflects the company's robust position in the industry and its financial health.

Factors Behind the Upgrade

The rating agency highlighted several key factors for the upgrade, including LG CNS's leading order competitiveness, enhanced profit generation capacity, capital expansion through its recent IPO, and outstanding financial stability. The company's listing on the KOSPI in February this year has further solidified its market position.

Financial Performance Highlights

LG CNS has shown remarkable financial growth, with operating profit soaring from 246.1 billion won in 2020 to 512.9 billion won last year. The first quarter of this year saw a provisional operating profit of 78.9 billion won, marking a 144% increase compared to the same period last year.

Strategic Initiatives Driving Growth

Korea Ratings also noted LG CNS's active involvement in consulting and implementing projects related to AI, cloud, IoT, and big data. "LG CNS has been pivotal in driving the group-wide digital transformation and cloud adoption, as well as in the intellectualization of manufacturing infrastructure," the report stated, underscoring the company's enhanced business capabilities.