Moody’s: POSCO’s EBIDTA to fall amid weaker demand from carmakers

Monday, 13 January 2020 17:53:50 (GMT+3)   |   Istanbul
       

Moody's Investors Service has said in its recent report that it expects South Korean steelmaker POSCO's adjusted annual EBITDA to decline by about nine percent over the next 12-18 months due to the slowdown in the global auto industry, especially in China, which may put pressure on demand for flat steel products. The EBIDTA of POSCO may reach KRW 7.7 trillion ($6.6 billion) against KRW 8.4 trillion posted for the year ended September 30, 2019.

Moody’s predicted that global light vehicle sales will contract by 0.9 percent in 2020 after falling by a projected 3.8 percent in 2019, as SteelOrbis reported earlier.

Nevertheless, POSCO's profitability will remain more resilient than its rivals and its overall financial performance will be good. The ratings agency has affirmed POSCO's Baa1 ratings and its rating outlook has remained stable.


Most Recent Related Articles

Thailand’s semis imports up sharply in Feb as slab shipments surge

Slab prices in Asia down further with demand seen only from China

Hoa Phat postpones BF launch and entry to HRC market due to coronavirus

Indonesia and Vietnam offer most competitive billet prices in Southeast Asia

Non-Chinese HRC exporters fighting for Vietnamese customers