International credit rating agency S&P Global Ratings (Standard & Poor's Ratings Services) has announced that it has revised its outlook on South Korean steelmaker Pohang Iron and Steel Co. (POSCO) to stable from negative and has affirmed its 'BBB+' long-term corporate credit rating for the company.
S&P stated that the outlook revision of POSCO reflects its expectation that POSCO will maintain stable profitability over the next one to two years. This is primarily due to the company's product competitiveness and ongoing cost management efforts, which will enable it to weather volatile conditions in the steel industry.
The credit rating agency also stated that it attributes the improvement in the company’s operating performance mainly to good profitability in its mainstay steel business, largely stemming from growing high value-added product sales and good operating efficiency.