S&P lifts Posco Engineering to stable view

Standard & Poor’s said it revised the outlook to stable from negative on Posco Engineering & Construction Co. Ltd. to stable from negative.

The agency also said affirmed the company’s BBB- long-term corporate credit rating.

The outlook revision reflects an expectation that the company will maintain stable credit metrics over the next 12 months, mainly thanks to about planned cash inflows of about 4 billion in Korean won from the issuance of new shares to Public Investment Fund, S&P said.

The company will use the proceeds mainly to improve its finances, including debt repayments, the agency said.

However, the company will continue to face a challenging operating environment, mainly due to declining revenues in its steel and power plant businesses, S&P added.

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