...The Negative Watch reflects Companhia Siderurgica Nacional's (CSN) elevated refinancing risks in the short term. Within the next two months, Fitch expects CSN to refinance about BRL10.7 billion within local banks, which should occur in conjunction with the publication of its audited 2017 quarterly financial statements, following changes from the independent auditors. If successful, the company will need to refinance BRL6.6 billion of international bonds maturing in 2019 and 2020. The potential political turbulence in Brazil due to general elections (Oct. 18) and potential for risk aversion toward Brazilian issuers, will pressure CSN to start discussions with creditors as early as possible, and any failure to make progress with the banks during the next few months could lead to a rating downgrade. The `B' rating reflects CSN's high leverage and the lack of progress on asset sales during 2017. Other issues constraining the rating include weak corporate governance and the delayed publication...
