Thursday, June 12th, 2014
The credit rating of POSCO has been degraded to an "AA+" from an "AAA."Korea Ratings said on June 11 that it has adjusted the rating of the steel maker downward by one notch. With the latest credit rating adjustment, only three companies, KT, SK Telecom, and Hyundai Motor, are left with the highest credit rating of AAA.
POSCO has been given the highest rating for 25 years since Nice Ratings gave it the AAA rating. Earlier in 2010, Moody's Investors Service had degraded the company's rating to "Baa2" from "A1."
Korea Ratings attributed the adjustment to the slowdown in the global steel market and the resulting worsening of profitability of the company. Kang Cheol-gu, analyst with Korea Ratings, said, "Amid the situation of slow market, POSCO's dominant market position in the upstream sector has been weakened, resulting in the degrading.""POSCO's surplus profit has been eroded in the process. Its profitability will remain at the last year's level at best," he added.