SAO PAULO (Standard&Poor's) Nov. 17, 2005--Standard&Poor's Ratings Services said today that the acquisition of 40% of Spanish specialty steel maker Corporación Sidenor S.A. (Sidenor, unrated) by Brazilian steel maker Gerdau Group will not immediately affect the ratings on Gerdau S.A. (local currency and foreign currency, BB+/Stable/--; national scale, brAA+/Stable/--). The transaction will cost Gerdau 40% of the announced price of €443.8 million (with the remaining 40% paid by Spain's financial group Santander and 20% by Sidenor's current executive management) plus a variable portion estimated at €19.5 million. We believe Gerdau has already managed to build up the necessary liquidity to face this payment without incurring any additional debt, and we still expect Gerdau to sustain moderate
