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Biz News Korea(Eng)
Moody’s raises credit rating of Hyundai Steel to Baa2
- Collected
- 2016.11.04
- Distributed
- 2016.11.07
- Source
- Go Direct
Hyundai Steel said on Wednesday Moody’s raised its debt rating by one notch from `Baa3` to `Baa2`, on a par with its bigger local rival Posco. The outlook on the issuer was “stable.”
S&P in February upgraded the steel maker’s debt rating by one notch from `BBB-` to `BBB`. Higher rating on the investment grade level could make it easier and cheaper for the steelmaker to draw overseas funds.
Moody’s expected Hyundai Steel’s operating income to modestly grow in 2017 and debt levels continue to fall over the next year or half to allow greater cash flow.
Moody’s forecast that Hyundai Steel’s debt will decline from 12.9 trillion won ($11.32 billion) last year to 11.5 trillion won within 12 to 18 months on a consolidated basis. As a result, the steelmaker’s adjusted debt against EBITDA will decrease from 4.7 times to about four times over the same period.
A Hyundai Steel official said "Moody’s evaluation will give an additional boost to our external credibility. With the completion of massive investment projects, the cash flow is also expected to improve and this will positively affect our financial structure.”
Shares of Hyundai Steel closed unchanged Thursday at 48,500 won ($42.56)
By Moon Ji-woong
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]