Moody's cuts POSCO's rating outlook to negative

SEOUL, March 13 (Yonhap) -- Moody's Investors Service said Friday it has downgraded its rating outlook for POSCO to negative from stable due to a downturn in the global steel industry while retaining its A1 foreign currency bond rating for the steelmaker.

"The change in outlook to negative reflects an expected deterioration in POSCO's
operating performance against the backdrop of the severe downturn in the global
steel industry," the rating agency said in a statement.
Moody's said the global steel industry has exhibited recessionary conditions, as
demonstrated by a sharp drop in product prices and demand. "Consequently, POSCO's
earnings should come under pressure, while unfavorable exchange rate movements
could exacerbate the situation," it said.
However, the outlook could return to stable if the company can keep its financial
profile consistent with its A1 rating through the current down-cycle, Moody's
said.
In October, 2007, Moody's upgraded POSCO's rating to A1 from A2.
sam@yna.co.kr
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