S&P lifts Samsung Electronics

Standard & Poor's said it raised the long-term corporate credit and debt ratings on Samsung Electronics Co. Ltd. to A+ from A.

S&P also affirmed the company's A-1 short-term corporate credit rating.

The outlook is stable.

The upgrade reflects an expectation that the company will maintain solid measures of financial performance over the next 24 months as a result of strong cash flow and conservative financial policies, the agency said.

S&P said it expects Samsung's strong market position, good business diversification and technological leadership to maintain its solid operating performance over the next one to two years.

The company's business risk profile is considered strong and its financial risk profile is considered modest, the agency said.

Samsung significantly improved its market position for smartphones - the company's most profitable and fastest growing segment - to about 33% globally in the first half of 2013 from about 8% in 2010 as a result of the success of its flagship "Galaxy series" smartphones, S&P said.

Competition is expected to intensify and lower selling prices are expected in its mobile handset business, making operating conditions more challenging over the next 24 months, the agency said.

However, good business diversification and strong market positions in other businesses such as semiconductors, display panels and consumer electronics should sustain stable operating performance over the next one to two years, S&P said.

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