Moody's: Posco unaffected

Moody's Investors Service said that Posco's moderate operating results in 2011 and investment plan for 2012 will not have any immediate impact on its A3 rating and negative outlook.

Based on Posco's reported operating income of ₩5.4 trillion in 2011, Moody's said it estimates that adjusted EBITDA decreased by 12% year-on-year in 2011. As a result of this decline and a 27% increase in debt, adjusted debt/EBITDA grew to about 3.6x in 2011 from 2.6x in 2010, while EBIT/interest dropped to 7x from 8.9x.

"Posco's moderate financial results are broadly in line with expectations and have been factored in the current outlook, which was revised to negative from stable last November," Moody's vice president and senior credit officer Chris Park said in a news release.

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