Korea Times has reported that S&P Global Ratings has warned that South Korean steelmaker POSCO may face risks in its credit rating, if the steelmaker continues to push ahead with business cooperation with India's Adani Group. S&P Director Mr Park Jun-hong told Korea Times “POSCO's memorandum of understanding with Adani is non binding and the Korean firm's investment plan in India has not materialized yet, so at this moment, the crisis seems to have a limited impact on POSCO's credit rating. If POSCO begins the investment, however, it could face a huge risk. S&P will keep a close watch on whether POSCO will begin to spend cash for its cooperation with Adani. S&P will monitor how much money the steelmaker will spend in India and how it will raise the money.” Another US credit ratings agency Moody's Investors Service responded similarly. Moody's Investors Service Assistant Vice President Mr Sean Hwang told The Korea Times “The recent significant and rapid decline in the market equity values of the Adani Group companies has no material impact on POSCO. While POSCO has partnered with Adani Group in exploring an opportunity to build a new steel plant in India, the engagement remains at the MOU stage.” In January 2022, POSCO and Adani Group signed a non-binding MOU to invest USD 5 billion in various business opportunities, including the construction of an integrated steel mill utilizing renewable energy resources and green hydrogen. POSCO Group Chairman Mr Choi Jeong-woo had said at the time “POSCO and Adani are able to come to great synergy in the steel and eco-friendly business with POSCO's state-of-the-art technology in steel making and Adani's expertise in energy and infrastructure.” Adani was hit hard recently by US short seller Hindenburg Research's claim that it has been involved in widespread corporate malfeasance, including market manipulation and accounting fraud. Even after Adani affiliate stocks plunged on 24 January in the wake of Hindenburg's claim, POSCO's holding firm said during a conference call on its fourth-quarter earnings on 27 January that the steelmaker has solved various problems regarding its joint venture with Adani one by one.
Korea Times has reported that S&P Global Ratings has warned that South Korean steelmaker POSCO may face risks in its credit rating, if the steelmaker continues to push ahead with business cooperation with India's Adani Group. S&P Director Mr Park Jun-hong told Korea Times “POSCO's memorandum of understanding with Adani is non binding and the Korean firm's investment plan in India has not materialized yet, so at this moment, the crisis seems to have a limited impact on POSCO's credit rating. If POSCO begins the investment, however, it could face a huge risk. S&P will keep a close watch on whether POSCO will begin to spend cash for its cooperation with Adani. S&P will monitor how much money the steelmaker will spend in India and how it will raise the money.” Another US credit ratings agency Moody's Investors Service responded similarly. Moody's Investors Service Assistant Vice President Mr Sean Hwang told The Korea Times “The recent significant and rapid decline in the market equity values of the Adani Group companies has no material impact on POSCO. While POSCO has partnered with Adani Group in exploring an opportunity to build a new steel plant in India, the engagement remains at the MOU stage.” In January 2022, POSCO and Adani Group signed a non-binding MOU to invest USD 5 billion in various business opportunities, including the construction of an integrated steel mill utilizing renewable energy resources and green hydrogen. POSCO Group Chairman Mr Choi Jeong-woo had said at the time “POSCO and Adani are able to come to great synergy in the steel and eco-friendly business with POSCO's state-of-the-art technology in steel making and Adani's expertise in energy and infrastructure.” Adani was hit hard recently by US short seller Hindenburg Research's claim that it has been involved in widespread corporate malfeasance, including market manipulation and accounting fraud. Even after Adani affiliate stocks plunged on 24 January in the wake of Hindenburg's claim, POSCO's holding firm said during a conference call on its fourth-quarter earnings on 27 January that the steelmaker has solved various problems regarding its joint venture with Adani one by one.
