S&P Global Ratings has placed a BBB long-term issuer rating on LG Energy Solution's (KRX:373220) proposed senior unsecured notes, according to a Friday release.
The issuance may include a senior unsecured green bond.
The notes' rating is similar to the Korean battery maker's long-term issuer credit rating, with a priority ratio of about 44%, below S&P's notching-down threshold of 50%.
The rating agency holds a negative outlook on the company, citing the risk of greater-than-expected weakness in its creditworthiness due to dampened demand for chemicals and electric vehicle batteries.
The company's rising energy system segment and lower capital investment should partly mitigate headwinds from weak EV sales volume in the US.
S&P expects the company's adjusted debt-to-EBITDA ratio to remain above the 3.5x downside threshold this year.