...Fitch rates a number of steel companies in Brazil and Russia that share similar operational and financial characteristics but have vastly different credit ratings despite operating in countries with comparable sovereign ratings. This report analyzes key components of credit risk for steel producers in these countries. Variables scrutinized include raw materials self-sufficiency, sales volumes, market presence, corporate governance, liquidity, and profitability per metric ton. Fitch also discloses its aggregate financial projections for these steel producers between 2009 and 2011. As can be seen in the report, Russian steel companies are more exposed to refinancing risk than their Brazilian peers due to their aggressive pursuit of growth through acquisitions during the past five years. This is highlighted by the difference in the companies' cash/short-term debt ratios. The range for the Brazilian companies in this report with respect to this liquidity ratio is from 2.2x to 4.0x, while the...
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| Report Type: | Special Report
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| Company(ies): | Companhia Siderurgica Nacional (CSN), Evraz Group S.A., Magnitogorsk Iron & Steel Works, Metalurgica Gerdau S.A., Novolipetsk Iron & Steel Corporation, Severstal, Usinas Siderurgicas De Minas Gerais S.A. (USIMINAS)
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| Ticker(s): | CHMF , CSNA3 , GOAU3 , MAGN , NLMK , USIM3
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| Issuer: | Usinas Siderurgicas de Minas Gerais S.A. (Usiminas)
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| Free Sample: |
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| Format: | | PDF |  |
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