S&P cuts Posco

Standard & Poor's said it lowered its long-term corporate credit and debt ratings on Posco to BBB+ from A-.

The outlook on the long-term corporate credit rating is stable.

"The ratings downgrade reflects our expectation that the financial risk profile for Posco is likely to be weak for an A- rating over the next 12 to 24 months," said S&P credit analyst Sanygun Han in a news release.

"We expect the ratio of the company's debt to EBITDA to exceed 3x, the threshold we previously assessed as the trigger for a downgrade."

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