S&P rates Posco bonds A

Standard & Poor's said it assigned an A rating to Posco's proposed issue of U.S. dollar-denominated senior unsecured bonds.

The agency said the bonds will not materially change the company's modest financial risk profile because it believes the company will use most of the proceeds to refinance existing bonds that are due to mature this year.

However, over the course of this year, S&P said it believes the company needs to raise additional debt and that any additional debt would deteriorate the company's financial risk profile to some degree.

The company has large cash requirements due to its plans for substantial capital investment and acquisitions, the agency said.

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