Global ratings agency Standard & Poor’s has said that it doesn’t see the Galaxy Note 7 having a big impact on Samsung’s ratings. It has said today that the global recall and discontinuation of the Galaxy Note 7 is not going to affect its ratings for Samsung Electronics. Standard & Poor’s is considered one of the world’s leading equity index providers as well as one of the best sources for independent credit ratings. It has been providing financial market intelligence for decades so its decision to keep Samsung’s ratings intact bodes well for the company’s performance in the financial market following the entire debacle.
Standard & Poor’s sent out a statement today saying “We believe the impact on the ratings will be limited at this stage” primarily because of Samsung’s strong net cash holdings of almost $58 billion. The agency also said that the financial impact of the Galaxy note 7 recall is going to be limited due to Samsung’s “stronger-than-expected performance in its memory semiconductor, consumer electronics, and display panel businesses based on its leading market positions and recovering profitability in the businesses.” S&P does predict some “erosion” of Samsung’s brand image following the recall, but that was to be expected anyway.