November 22, 2024

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Posco International headquarters in Songdo, Incheon (Posco International)

Posco International, the trading arm of Posco Group, announced Thursday that it received its first credit rating from global credit rating agencies Standard & Poor's and Moody's on Tuesday.

Posco International was assigned a rating of BBB+ by S&P and Baa2 by Moody's, with both agencies providing a stable outlook for the company's credit rating.

An S&P rating of BBB- or higher is generally considered investment grade. Posco International's BBB+ rating is on par with those of major Korean companies such as LG Energy Solution, LG Chem and Hyundai Glovis, according to the firm.

Posco International attributed its credit rating to the strength of its steel trading and power generation businesses. Its diversified portfolio — including steel, energy, food, biomaterials and drive motor cores — and stable EBITDA growth driven by solid business performance also contributed.

This marks the third instance of Posco Group receiving a global credit rating, following Posco Holdings and Posco.

Posco International anticipates that obtaining global credit ratings will help enhance its credibility in global markets, improve corporate image, diversify financing options such as issuing overseas bonds, and foster collaboration with global partners.

"The credit rating is a testament to our company's capabilities on the global stage," a Posco International official said. "We will continue to strive to enhance corporate value through financial stability and a robust profit structure."

By Kim Hae-yeon (hykim@heraldcorp.com)