International credit rating agency Moody's has announced that South Korea-based Hyundai Steel’s robust operating results for the second quarter this year support the steelmaker's Baa3 ratings and positive rating outlook.
In the second quarter, Hyundai Steel reported an 18 percent growth in its operating income to KRW 424 billion ($367 million), year on year, mainly driven by increased demand for long steel products, supported by the recovery in the local housing industry.
Moody's expects the company's operating income to grow by high single digits year on year in 2015, as a 29 percent year-on-year growth in operating income in the first half and incremental earnings contribution from its newly acquired companies, Hyundai Hysco and Dongbu Special Steel, should more than offset an expected softening in steel margins in the second half.