Moody's rates Posco Engineering & Construction Baa1

Moody's Investors Service said it assigned a Baa1 issuer rating to Posco Engineering & Construction Co., Ltd.

The outlook is stable.

The ratings are based on the company's significant market position in the Korean construction industry as well as the support that its parent is likely to provide in a distressed situation, Moody's said. The rating also takes into account the company's high business/revenue stability, which is a result of the sizeable revenue contribution from its parent, Posco, and its large order book, the agency added.

Moody's said it also factors in Posco Engineering's concentrated operations in Korea and heavy dependence on two divisions for cash flow generation and its moderate liquidity profile, which is partly offset by its good access to the domestic debt markets.

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