S&P downgrades Posco Engineering to BBB

Standard & Poor's said it lowered its long-term corporate credit rating on Posco Engineering & Construction Co. Ltd. to BBB from BBB+ and removed the rating from CreditWatch with negative implications, where it was placed on June 28.

The outlook is negative.

S&P said the downgrade of Posco Engineering reflects its expectation that the company's profitability and cash flow will weaken in the immediate term due to difficulties in its domestic housing and overseas engineering businesses and contingent liabilities associated with developers' project finance debt.

Although Posco Engineering's stand-alone credit profile has worsened, the agency said, the rating continues to reflect the possibility of extraordinary support from its parent company, Posco, in the event of serious financial distress.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.