S&P: Posco view to negative

Standard & Poor's said it revised the outlook on Posco's BBB+ long-term corporate credit rating to negative.

S&P also said it affirmed the rating, along with the company's debt ratings.

The agency said it believes the company's high debt and continued negative free operating cash flow give it little headroom to maintain the current ratings this year.

The company's debt-to-EBITDA ratio is likely to remain close to the trigger for a downgrade - 3.7x adjusted debt-to-EBITDA, the agency said.

S&P said it believes heavy capital investment and only modest improvement in Posco's operating performance are likely to produce significant negative free operating cash flow this year, for the fourth consecutive year.

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