S&P boosts Posco

Standard & Poor's said it raised its long-term corporate credit rating on Posco to A from A-.

At the same time, S&P said it raised its rating on the company's senior unsecured debt to A from A-.

The outlook on the long-term corporate credit rating is stable, the agency said.

"The upgrade is based on Posco's improved financial risk profile and the company's enhanced ability to maintain strong profitability and operating cash flow during the industry downturn through cost cutting and product mix improvement," said S&P credit analyst GaYeon Kim.

"Some concerns remain over Posco's aggressive investment plans over the next few years, which include capital expenditures and other investments. However, we believe that Posco should be able to maintain a strong balance sheet while continuing to execute its substantial investments."

According to S&P, the rating on Posco reflects the company's continued leading market position in Korea, pricing power in the domestic market, diversified end markets and strong balance sheet and cost competitiveness - factors that enable it to generate healthy cash flows even during market downturns.

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