Moody's downgrades Posco

Moody's Investors Service said it downgraded Posco Engineering & Construction Co., Ltd.'s issuer rating to Baa3 from Baa2.

The outlook is stable.

This concludes the review for possible downgrade that began in June.

The downgrades are due to an expectation that the company's financial profile will remain weak for its previous Ba1 standalone rating for an extended period, mainly due to its lackluster performance and recent debt takeover from a property developer, Moody's said.

Despite its recent efforts to strengthen its risk screening systems, concerns remain as to the quality of its projects on hand and payment guarantees for property developers that were initiated when it pursued an aggressive business strategy, the agency said.

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