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10 months ago
BRIEF-Fitch says reputation risk bigger than cost impact of Samsung recall
October 13, 2016 / 3:41 AM / 10 months ago

BRIEF-Fitch says reputation risk bigger than cost impact of Samsung recall

Oct 12 (Reuters) - Fitch:

* Fitch - reputation risk bigger than cost impact of Samsung recall

* Fitch - Impact of note 7 incident unlikely to be significant enough in itself to affect Samsung stable credit rating, which is supported by strong financial metrics

* Fitch - problems with the note 7 have raised long-term uncertainty about Samsung Electronics' handset operations

* Fitch - expect co's profit for next few quarters to be affected by loss of smartphone sales and additional expenses related to the note 7, such as legal claims

* Fitch - Note 7, other potential Samsung Electronics' handset customers may now chose Apple or mid-tier cos, if damage to Samsung and Galaxy brands is sustained

* Fitch - believes that the benefits of Samsung Electronics' diversified product portfolio have reduced its vulnerability to shock Source text for Eikon: Further company coverage:

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