LS Yongsan Tower. [Provided by LS]
LS Yongsan Tower. [Provided by LS]

LS announced Monday that it has received an A0 (stable) credit rating from Japan Credit Rating Agency (JCR), one of Japan's leading credit rating agencies.

The rating reflects external recognition of LS's strong business structure and financial soundness. Domestic companies that receive an A0 rating from JCR typically hold a domestic credit rating of around AA-, making the recognition notable given that LS currently carries a domestic rating of A+ — one notch below that threshold.

In its assessment report, JCR said LS "holds core business subsidiaries with solid market competitiveness, including LS Cable & System, LS Electric and LS MnM, giving it strong resilience against economic fluctuations." The agency added that LS "has secured stable earnings-generating capacity on a consolidated basis through proactive risk management and strategic portfolio diversification."

LS also received a positive assessment from domestic rating agencies in the form of an upgraded outlook. Korea Ratings, Korea Credit Rating and NICE Credit Rating — the three major domestic credit rating agencies — raised their outlook on LS's unsecured bonds from "stable" to "positive" at the end of last month. The unsecured bond credit rating itself was maintained at A+.

The domestic agencies cited improved earnings at LS's key subsidiaries, driven by the global expansion of AI data centers and growing investment in power grids, as the main factors behind the upgrade. LS Cable & System was recognized for its strong market position in extra-high-voltage cables and stable cash generation, while LS Electric was credited for rising global profitability in its power equipment segment.

The domestic agencies also noted that LS's financial health indicators remain stable, with the company's cash generation capacity standing at 4.3 times its net debt as of end-2025.

"With the A0 rating from JCR, we expect to expand loan agreements with Japanese banks and improve our financing terms," an LS official said. "We will use this as an opportunity to diversify our global funding channels and optimize procurement costs, further strengthening the efficiency of our financial structure."

Meanwhile, LS Group affiliates LS Cable & System and LS Electric continue to rack up orders on the back of the booming AI market. Most recently, Gaon Cable, a subsidiary of LS Cable & System, announced it had supplied distribution cables worth tens of billions of won to SK Hynix's semiconductor cluster in Yongin, Gyeonggi Province.


yeongdai@heraldcorp.com