Dongkuk Steel, Second Credit Rating Upgrade This Year to BBB

Jang Se-wook, Vice Chairman of Dongkuk Steel, is announcing last year's business performance.

[Asia Economy Reporter Choi Dae-yeol] Dongkuk Steel announced on the 29th that its corporate credit rating has been raised one notch from ‘BBB-(Positive)’ to ‘BBB(Stable)’. Earlier, in May, the rating outlook was upgraded from ‘BBB-(Stable)’ to ‘BBB-(Positive)’ by the three major credit rating agencies, and it has been raised once more after about five months.

Hanjin Ratings cited favorable industry conditions and improved profit-generating capacity as the reasons for the upgrade. The expectation that the trend of reducing financial burdens will continue based on stable operating cash flow also influenced the decision. Additionally, the company is expected to maintain an improved financial structure by securing an excellent market position in the billet and shaped steel sectors, while diversifying its product portfolio with cold-rolled and color steel sheets.

The improvement in the North American steel market and the better performance of Brazil’s CSP also alleviated the company’s potential financial burdens. Based on this evaluation result, the company plans to focus on further rating upgrades.

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