S&P upgrades Samsung

S&P said it raised the long-term corporate credit rating on Samsung Electronics Co. Ltd. to AA- from A+.

The agency also said it affirmed the company's A-1+ short-term corporate credit rating.

S&P also raised the long-term rating on Samsung's senior unsecured notes to AA- from A+.

The outlook is stable.

The upgrades reflect an expectation that Samsung will maintain robust profitability, generate strong free operating cash flows and increase its cash holdings over the next one- to two-years, S&P said.

A view is based on favorable conditions in the memory chip market and the modestly improving performance in the company's smartphone and display panel businesses, the agency said.

Samsung is strengthening its competitive position in the memory semiconductor industry with growing market shares on the back of its leading technology in premium products, such as vertical NAND flash chips, S&P said.

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