Fitch ups Posco, debt to BBB+

Fitch Ratings said it upgraded Posco's long-term foreign-currency issuer default rating to BBB+ from BBB, senior unsecured debt rating to BBB+ from BBB and short-term foreign-currency issuer default rating to F2 from F3.

The outlook is stable.

Fitch said the upgrade reflects its view of robust steel-industry fundamentals and the company's improved financial profile.

Posco’s strong operating performance across all divisions and restructuring efforts enabled it to reduce debt and its FFO adjusted net leverage fell to 1.6 times in 2017, which is below the agency’s positive guideline of 2.5 times.

Fitch added that it expects further improvement over the next two to three years with continued free cash flow generation from robust steel-industry fundamentals.

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