Moody's rates Hyundai Steel

Moody's Investors Service said it assigned a first-time rating of Baa3 issuer rating to Hyundai Steel Co.

The outlook is stable.

The rating mainly reflects Hyundai Steel's Ba2 standalone credit profile and a two-notch rating uplift from the support that Hyundai Motor group is likely to provide in a distressed scenario, Moody's said.

The company's stand-alone rating is supported by its competitive scale and market position in Korea' steel industry, the significant degree of product and end-market diversification, and its operating stability as a result of the presence of large captive demand from its automotive affiliates, the agency said.

Such strengths are counterbalanced by the cyclical nature of the steel industry, its moderate liquidity and aggressive investment strategy, Moody's said.

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