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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Global credit rating agency S&P announced on Thursday that it has revised the credit rating outlook for POSCO Holdings, POSCO, and POSCO International from "Stable" to "Negative." The agency cited weak earnings and uncertain profitability as key factors for the downgrade.
In its latest report, S&P projected that POSCO Holdings’ profitability will remain at a low level. The agency noted that POSCO’s core steel business continues to face challenges due to oversupply from China and sluggish demand. Additionally, S&P highlighted the ongoing losses in the secondary battery materials segment, predicting that deficits will likely persist.
S&P also pointed to large-scale capital expenditures as a financial burden. Before 2022, POSCO’s annual capital expenditures ranged between 2.5 trillion KRW and 3.5 trillion KRW. However, the figure surged to 7.1 trillion KRW in 2023 and is expected to reach 8.4 trillion KRW in 2024. S&P estimates that the company will spend approximately 7.5 trillion KRW on capital investments this year.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
