Fitch affirms Posco

Fitch Ratings said it affirmed Posco's long-term foreign-currency issuer default and senior debt ratings at A-, as well as its short-term issuer default rating at F2.

The outlook remains stable.

"The ratings reflect Posco's dominant role in the Korean steel industry and its position among the top five steel manufacturers globally. Its competitive cost position, reflected by its higher metal spread (defined as gross profit per ton of steel sold) over other major North Asian steel producers, allows it to better weather any downturn," Su Aik Lim, a director at Fitch, said in a statement.

A substantial increase in debt-funded expansion resulting in adjusted net debt-to-operating EBITDAR excluding project finance guarantees exceeding 2.0x at the peak level, or exceeding 1.5x through the cycle, may result in a negative rating action, the agency noted.

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