S&P assigns Posco bonds A-

Standard & Poor's said it assigned its A- rating to Posco's (A-/positive) $300 million senior unsecured bonds proposed under Regulation S due 2016.

The agency said that the rating on Posco reflects the company's leading market position in Korea, pricing power in the domestic market, diversified end markets, strong cost competitiveness, which helps generate healthy cash flows even during market downturns and low debt leverage.

At the same time, the rating is tempered by Posco 's high procurement costs, substantial investment plans and aggressive expansion strategy, with plans to expand its overseas capacity by 15 million tons by 2010, the agency added.

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