...Rating Impact Neutral Fitch Ratings' ratings for Brazilian steel companies have a built-in expectation of improved performance for 2014 and 2015. Although these companies exhibit robust liquidity positions, gross leverage remains high for their respective rating categories. However, a focus on cost-efficiency over the prior two years has begun to filter down to financial performance. Brazil's import tariffs on various steel products have also improved financial performance, lessening pressure from lower priced imports. This in turn has allowed steelmakers to successfully push through a number of consecutive price increases. Modest Turnaround Expected Fitch expects steel demand to grow modestly following the agency's expectations of 1.9% GDP growth in the country for 2014. Brazil's steel institute (IaBr) projects steel production to increase by 4.4% to 23.92 million metric tons (mt) in 2014 from 22.91 million mt in 2013. With expectations of apparent steel consumption increasing by 3.2%...
