S&P cuts Hyundai Steel

Standard & Poor's said it affirmed its BBB- long-term corporate credit and debt ratings on Hyundai Steel Co. At the same time, the agency said it kept the outlook on the ratings at stable.

However, the agency said it lowered the standalone credit profile for Hyundai Steel to bb from bb+ while reflecting two notches of support from its parent Hyundai Motor Group, whose core company is Hyundai Motor Co., instead of one notch.

"The rating affirmation reflects our expectation that a strong likelihood of support from the group would offset deterioration in the financial risk profile for Hyundai Steel over the next 12 to 18 months," said Sangyun Han, an S&P credit analyst, in a news release.

S&P said the lowering of the standalone credit profile for Hyundai Steel to bb from bb+ reflects the agency's view that measures of the company's credit quality are unlikely to be commensurate with the current standalone credit profile over the next 12 to 18 months.

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