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TEXT-S&P summary: Hyundai Steel Co.

(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. (Hyundai Steel; BBB-/Stable/--) reflect the company's balanced portfolio of steel products, leading position in the domestic market for long steel, captive target market for flat steel products, and likelihood of receiving support from Hyundai Motor Group (HMG), to which it belongs and whose core company is Hyundai Motor Co. (HMC; BBB+/Stable/--). Factors that constrain the ratings include competitiveness and industry cycles in the steel business and Hyundai Steel's weak competitiveness in terms of size, technology, and access to raw materials. We assess the stand-alone credit profile (SACP) for Hyundai Steel to be 'bb'; thus, our ratings on Hyundai Steel reflect two notches of support from HMG.