POSCO Engineering & Construction Receives A+ Credit Ratings from All Three Major Domestic Credit Rating Agencies

POSCO Engineering & Construction CI (Provided by POSCO Engineering & Construction)

[Asia Economy Reporter Lee Chun-hee] POSCO Engineering & Construction has received an A+ credit rating from all three major domestic credit rating agencies.

On the 20th, POSCO Engineering & Construction announced that on the 19th, it received an upgraded credit rating from NICE Credit Rating, becoming the only construction company to receive an A+ credit rating from all three major domestic credit rating agencies, including Korea Credit Rating and Korea Investors Service.

NICE Credit Rating upgraded POSCO Engineering & Construction's unsecured bond credit rating from A0 (positive) to A+ (stable) and its commercial paper credit rating from A2 to A2+. Earlier in June, Korea Credit Rating and Korea Investors Service also upgraded POSCO Engineering & Construction's credit rating from A0 to A+.

NICE Credit Rating forecasted that POSCO Engineering & Construction's excellent sales performance in the construction sector and the reduction of borrowings due to smooth collection of move-in payments would lead to alleviation of financial burdens and maintain financial stability. Despite the impact of COVID-19, the company has been smoothly receiving progress payments in its housing business, and the sales schedule has proceeded without significant changes due to operations such as virtual model houses, indicating that stable profitability is expected to be maintained in the future.

Additionally, the agency highly evaluated the company's proactive efforts to secure liquidity in preparation for COVID-19 and the possibility of excellent operating cash flow through the recovery of remaining reserves from Brazil CSP within this year. The continuous increase in order volume due to POSCO Group's investment expansion and the stable diversification of its business portfolio by steadily increasing sales proportions in plant and civil engineering sectors, in addition to construction, were also cited as reasons for the credit rating upgrade.

A POSCO Engineering & Construction official stated, "Based on the upgraded credit rating, we will steadily operate our business portfolio by continuously increasing high-quality orders to establish a stable financial structure and achieve sound growth."

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