Gerdau S.A.'s Proposed R$1.5 Billion Senior Unsecured Debenture Rated 'brAAA'

SAO PAULO (S&P Global Ratings) May 2, 2024--S&P Global Ratings today assigned its 'brAAA' national scale issue-level rating to Gerdau S.A.'s proposed 17th senior unsecured debenture. The amount will be R$1.5 billion, which has firm guarantees from the banks coordinating it, and matures in 2029. The debenture is rated at the same level as our issuer credit rating because the company has limited secured debt and faces low risk of subordination of liabilities, as majority of the debt is at Gerdau's level or fully guaranteed by it. Gerdau's operating performance remains resilient to industry headwinds thanks to its geographic and portfolio diversification. Steel producers in Brazil have suffered from the inflow of Chinese imports, which reached more than 25% of

...May 2, 2024 SAO PAULO (S&P Global Ratings) May 2, 2024--S&P Global Ratings today assigned its 'brAAA' national scale issue-level rating to Gerdau S.A.'s proposed 17th senior unsecured debenture. The amount will be R$1.5 billion, which has firm guarantees from the banks coordinating it, and matures in 2029. The debenture is rated at the same level as our issuer credit rating because the company has limited secured debt and faces low risk of subordination of liabilities, as majority of the debt is at Gerdau's level or fully guaranteed by it. Gerdau's operating performance remains resilient to industry headwinds thanks to its geographic and portfolio diversification. Steel producers in Brazil have suffered from the inflow of Chinese imports, which reached more than 25% of the steel consumption in December 2023 and should remain high in 2024. Industry's margins could gradually increase, as the Brazilian government increased tariffs on imports of some steel products from 10% to 25%, and the...

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