S&P rates Posco bonds A

Standard & Poor's said it assigned an A rating to the ¥52.8 billion five-year zero coupon senior unsecured exchangeable notes due 2013 issued by Posco's (A/stable) special-purpose vehicle Zeus (Cayman) and guaranteed by the company.

These notes are exchangeable into American Depositary Shares of SK Telecom Co. Ltd. (A/stable).

The rating reflects the company's dominant market position in Korea, its pricing power in the domestic market, its diversified end markets, its strong cost competitiveness and its low debt leverage, according to S&P.

The rating also considers high procurement costs, substantial investment plans and aggressive expansion strategy, the agency noted.

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