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 rating is currently on review for possible downgrade.

The proceeds from the notes will be used for general corporate purposes.

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

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

The rating also takes into consideration the cyclicality of the steel industry and the company's exposure to volatility in the prices of raw materials, Moody's added.

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