Moody's assigns Hyundai Steel notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to Hyundai Steel Co.'s proposed senior dollar-denominated notes.

The agency also said it affirmed Hyundai Steel's Baa3 issuer rating.

The outlook is stable.

The proceeds will be used mainly for refinancing.

The ratings reflect Hyundai Steel's Ba2 standalone rating and a two-notch rating uplift from the support that the Hyundai Motor Group is likely to provide in the event of stress, Moody's said.

Hyundai Steel's standalone rating is supported by the company's competitive scale and market position in Korea's steel industry, the significant degree of product and end-market diversification and the operating stability resulting from the large captive demand from its affiliates, the agency said.

The strengths are counterbalanced by the cyclical nature of the steel industry, the company's moderate liquidity and aggressive growth strategy, Moody's said.

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