LS Group's holding company, LS Corp., announced that it has received an 'A0 (stable)' credit rating from Japan's leading credit rating agency, JCR, on July 20.
According to industry sources, a domestic company receiving an A0 rating from JCR is typically assessed at a level equivalent to AA- in the domestic credit rating system. LS Corp.'s current domestic credit rating is A+, indicating an improvement with this JCR evaluation.
In its report, JCR stated, "LS Corp. possesses key subsidiaries such as LS Cable, LS Electric, and LS MnM, which enhance its resilience against economic fluctuations and enable stable consolidated earnings through effective risk management and portfolio diversification."
Domestic credit rating agencies have also adjusted their outlooks. Korea Ratings, Korea Credit Ratings, and NICE Investors Service upgraded LS Corp.'s unsecured bond credit rating outlook from 'stable' to 'positive' at the end of June.
The credit rating agencies cited improvements in subsidiary performance due to the expansion of artificial intelligence (AI) data centers and increased investments in power networks as key factors. They noted LS Cable's market position in the high-voltage cable sector, LS Electric's profitability in power equipment, and the company's substantial cash generation capacity relative to its net debt, which stood at 4.3 times as of the end of 2025.
With this new rating, LS Corp. anticipates expanding loan agreements with Japanese banks and improving financial conditions, aiming to diversify overseas funding and optimize costs.
* This article has been translated by AI.
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