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.
