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S&P raises Samsung's rating by one notch to A+

SEOUL, Aug. 8 (Yonhap) - Global rating agency Standard & Poor's Ratings Service said Thursday it raised its long-term credit rating on Samsung Electronics Co. by one notch to A+, citing a solid projected financial performance and good cash flow over the next two years.

The ratings outlook for the world's largest smartphone maker is stable, it said.

"Despite industry volatility and intensifying competition, we expect 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 ratings firm said.

S&P said Samsung significantly improved its market position for smartphones, the company's most profitable and fastest growing segment, to about 33 percent globally in the first half of 2013 from about 8 percent in 2010.

Shares of Samsung Electronics closed at 1,217,000 won (US$1,093) on the Seoul bourse, down 0.4 percent from the previous session's close.

Samsung Electronics said last month its second-quarter profit spiked 50 percent from a year earlier, buoyed by robust shipments of its flagship Galaxy S smartphones.

Net profit came to 7.77 trillion won in the April-June period, compared with a profit of 5.19 trillion won a year earlier, the company said earlier.

Revenue soared 20.7 percent on-year to a record 57.46 trillion won in the second quarter, and operating profit climbed 47.5 percent to a record 9.53 trillion won.

Samsung has been reporting a quarterly operating income of more than 8 trillion won since the third quarter of last year.