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TEXT-S&P summary: Hyundai Steel Co.

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(The following statement was released by the rating agency)

Oct 11 - =============================================================================== Summary analysis -- Hyundai Steel Co. ----------------------------- 11-Oct-2012 =============================================================================== CREDIT RATING: BBB-/Stable/-- Country: Korea, Republic Of Primary SIC: Steel foundries, nec Mult. CUSIP6: 44919Q =============================================================================== Credit Rating History: Local currency Foreign currency 14-Nov-2010 BBB-/-- BBB-/-- =============================================================================== Rationale

The ratings on Korea-based steel producer Hyundai Steel Co. Ltd. (HyundaiSteel; BBB-/Stable/--) reflect the company's balanced portfolio of steelproducts, leading position in the domestic market for long steel, captivetarget market for flat steel products, and likelihood of receiving supportfrom Hyundai Motor Group (HMG), to which it belongs and whose core company isHyundai Motor Co. (HMC; BBB+/Stable/--). Factors that constrain the ratingsinclude competitiveness and industry cycles in the steel business and HyundaiSteel's weak competitiveness in terms of size, technology, and access to rawmaterials. We assess the stand-alone credit profile (SACP) for Hyundai Steelto be 'bb'; thus, our ratings on Hyundai Steel reflect two notches of supportfrom HMG.