Moody’s revises Hyundai Steel view to stable

Moody's Investors Service said it revised the outlook on Hyundai Steel Co.’s Baa3 issuer and senior unsecured ratings to stable from negative.

The agency affirmed the ratings.

"The change in outlook primarily reflect our expectation that Hyundai Steel's financial profile will continue to improve on the back of lowered capital expenditure and increased earnings," Moody's senior vice president Chris Park said in a news release.

Hyundai Steel's adjusted debt/EBITDA fell to 5.2 times for the 12-month period ended September 2014 from 8.6 times in 2013, mainly due to an 86% year-on-year growth in adjusted EBITDA for the first nine months of 2014.

The growth in earnings was driven by the profits of: (a) Hyundai Hysco Co. Ltd.'s (unrated) cold-roll business, which was merged with Hyundai Steel in December 2013; and (b) Hyundai Steel's third blast furnace, which began mass production in the fourth quarter of 2013, Moody’s said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.