SAO PAULO (Standard&Poor's) April 9, 2014—Standard&Poor's Ratings Services assigned its 'BBB-' rating to Gerdau S.A.'s proposed $500 million senior unsecured bond due 2044. The bond will rank equal to Gerdau's other unsecured debt and will be used mostly for debt repayment The ratings on Gerdau reflect our assessment of the company's "satisfactory" business risk profile and "intermediate" financial risk profile. The supporting factors are Gerdau's adequate geographic diversification throughout the Americas, the company's still-favorable cost position in Brazil, its efficient operations overall, and its "strong" liquidity. Offsetting these rating strengths are Gerdau's exposure to the cyclical steel industry, the fierce competition from imports, and the ongoing challenging market conditions. RELATED CRITERIA Methodology And Assumptions: Liquidity Descriptors
