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Global rating agency Moody's Investors Service on Friday upgraded credit ratings of LG Electronics for the first time in seven years after the South Korean tech giant reported record earnings last year.

Moody's raised the ratings of LG Electronics to Baa2 from Baa3, with its ratings outlook remaining "stable." This is the first time since February 2014 that Moody's has revised up its ratings on the major South Korean tech firm.

"The upgrade reflects our expectation that, following a significant improvement in 2020, LG Electronics' (LGE) financial profile will remain solid over the next 1-2 years, driven by its steady sales and profitability, and the improved operating performance of its 37.9 per cent owned affiliate LG Display Co., Ltd.," said Gloria Tsuen, a Moody's vice president and senior credit officer.

"Baa2 ratings reflect its well-recognized brand and strong market positions in the global home appliance and TV segments, as well as its healthy balance sheet."

LG Electronics last year logged 63.2 trillion won (US$57 billion) in sales and an operating profit of 3.1 trillion won, both record highs in the company's history, reports Yonhap news agency.

Moody's said LG Electronics' earnings and business profile are likely to further improve if the company is able to exit its mobile business.

LG Electronics' mobile business has been in the red since the second quarter of 2015. With its accumulated operating loss reaching nearly 5 trillion won, the company recently said it will closely review the direction of its mobile business.