Moody's rates Posco notes A2

Moody's Investors Service said it assigned an A2 rating to Posco's proposed senior unsecured dollar-denominated notes.

The outlook is negative.

The proceeds will be used for general corporate purposes.

The rating is primarily based on the company's dominant position in Korea's steel sector, substantial scale by world standards and globally competitive cost position, Moody's said.

Further support for its rating comes from its favorable product mix, which is focused on value-added products, the agency said.

The rating also considers the cyclicality of the steel industry, its exposure to volatile raw material prices and an expected hike in the company's financial leverage as a result of its large-scale investment plan and the acquisition of Daewoo International Corp., Moody's added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.