S&P rates Posco bonds A

Standard & Poor's said it assigned an A rating to Posco's (A/stable) five-year senior unsecured bonds, as proposed under Regulation S/144A.

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, S&P said.

The rating considers the company's exposure to the inherent cyclicality of the steel industry, its substantial investment plans and its low captive procurement ratio, the agency said.

Posco's financial profile is characterized by high, relatively stable profitability and by solid cash flows, the agency noted.

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