Samsung rating safe after arrest

by 7:00 PM 0 comments
His arrest is likely to delay strategic investment and weigh on investor sentiment in the short term, Fitch flagged.
Still, strong metrics will continue to underpin the tech giant`s credit rating, the two agencies noted, echoing similar sentiments from Moody`s on Friday.
Lee`s arrest poses another risk to Samsung`s image following last year`s recall and suspension of the Galaxy Note 7, Fitch Ratings and S&P Global warned in separate statements late on Monday.
Lee was accused of paying bribes worth nearly $40 million to organisations linked to Park`s friend, Choi Soon-sil, in order to gain government approval for a merger of two Samsung units.
The hit to corporate leadership could also cause some delays in key strategic decisions, such as mergers and acquisitions, S&P added, which may undermine the company`s competitive position in the longer run.

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