s&p downgrade posco credit rating

http://www.posco.co.kr/homepage/docs/eng2/dn/invest/archive/2012_3Q_Presentation_Q&A.pdf


POSCO may be under some presure after their credit rating was downgraded by S&P.

They have lowered their forcast in steel profitability but expect the new Chinese government to introduce new stimulas which should see raw material prices increase.

Below is directly related to Arrium but suggest go to link and read full transcript. So much for just wanting the Wyalla steel works.

Q. Why do you consider acquisition of Arrium?
A. There are many mine assets in the market for sale that are worth investing due to the recent low valuation of share prices of these companies caused by falling iron ore prices. POSCO has been watching these assets in the perspective of raising its raw materials self-sufficiency ratio. Out of all the mines, we thought that Arrium has various advantages over others. The company is the only long steel manufacturer in Australia with a mining division of an 8 million ton capacity as of now and an expected 11 million ton in the future. In addition, Arrium is the only company that owns railways and ports in southern Australia.
POSA, one of our affiliates, is participating in the bidding consortium with a small stake, but we cannot disclose the detailed shareholding structure due to the binding condition among the shareholders.
Noble, a trading company, is another SI and the representative of the consortium, and is already generating revenue through selling Arrium’s iron ore to the Chinese market. As the initial offer price was turned down by Arrium, Noble and POSCO will continue negotiations with Arrium