Moody's cuts Posco

Moody's Investors Service said it downgraded Posco's foreign-currency bond rating to A2 from A1.

The outlook is negative.

This concludes a review that began in May.

The downgrade follows the completion of the company's cash-funded acquisition of a 68.1% stake in Daewoo International Corp. for KRW 3.4 trillion, Moody's said.

The downgrade primarily reflects the consequent weakening in the company's financial and business profile following the sizeable acquisition and the consolidation of Daewoo's considerably weaker operations and highly leveraged balance sheet, the agency said.

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