Moody's rates G Steel bond B1

Moody's Investors Service said it assigned its provisional B1 rating to G Steel Public Co. Ltd.'s proposed senior unsecured bond, the proceeds of which are intended to fund the company's de-bottlenecking program.

At the same time, Moody's said it affirmed the company's B1 corporate family rating.

The outlook is stable.

Moody's noted the significant drop in hot roll coil prices and expects this trend to continue, albeit at a moderating pace in the near term, thereby weakening G Steel's cash generation ability and pressure its liquidity profile.

"However, the $61 million in proceeds from the company's recently completed IPO along with the proposed bond issuance will support its liquidity profile and be sufficient to fund its planned capex", said Moody's lead analyst Angela Choi.

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