Moody's may still cut Posco

Moody's Investors Service said it is continuing its review of Posco's A1 foreign currency bond rating for possible downgrade.

The rating review was initiated in May, when Posco was appointed as the preferred bidder for a 68.1% stake in Daewoo International Corp., the agency added.

Moody's said it expects to conclude the review upon the signing of the share purchase agreement, which is expected to take place in September.

"Posco's rating will likely be downgraded to A2 if the transaction proceeds in its current form," said Chris Park, a Moody's vice president and senior analyst.

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