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Posco Earns Highest Credit Rating in the World Steel Industry

05/28/2007 - Posco was recently awarded the highest credit rating among global steel industries by Fitch Ratings, a world credit ratings agency.

Posco was recently awarded the highest credit rating among the global steel industries by Fitch Ratings, Ltd, a world credit ratings agency.
 
Fitch announced Posco’s credit rating as “A-“ and the long-term rating as “Stable” on 9, reflecting Posco’s industry-leading efforts for cost reduction and capabilities for successful management and technology development.

When announcing the results of annual credit ratings examination, Fitch disclosed that Posco had achieved the highest earnings in the steel industry as a result of its efficient production and sales system, increase of sales ratio for high-valued product, and successful cost-reduction efforts despite falling steel prices (2006 vs. 2005) and increasing prices of raw materials.

Fitch forecasted that Posco would maintain its high profitability through increased sales of high-valued product and continuous cost reduction. Fitch also noted its expectation that the continued improvement in the company’s cost structure through long-term technology development would function positively on cash flow.

Based on its good appraisal from Fitch, Posco can not only upgrade its enterprise status but can also elect more beneficial issue prices and interest rates when issuing bonds, etc. in foreign countries.

World credit rating is the result of impartial professional credit ratings agency analysis and evaluation of the management condition and financial status of public authorities and corporations around the world. The ratings allow investors to evaluate the company prior to investment and transaction, and in issuing foreign currency bond.