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Gerdau S.A.'s Proposed R$1.5 Billion Unsecured Debentures Rated 'brAAA' On Brazil National Scale

Published Nov 12, 2018

4 pages (1409 words) — Published Nov 12, 2018

Price US$ 150.00 | Buy this Report Now

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Abstract:

SAO PAULO (S&P Global Ratings) Nov. 12, 2018--S&P Global Ratings assigned today its 'brAAA' Brazil national scale issue-level rating to Gerdau S.A.'s (global scale: BBB-/Stable/--; national scale: brAAA/Stable/--) proposed R$1.5 billion unsecured debentures due 2022. The rating on the notes is the same as the issuer credit rating. We don't expect any increase in leverage, because the company plans to use proceeds, combined with part of cash proceeds from assets sales to strengthen cash position. In this sense, we expect the company to end 2018 below our estimative of a net debt to EBITDA of 2.5x. Gerdau's capital structure mainly consists of R$14.2 billion in senior unsecured international bonds due 2020, 2021, 2023, 2024, 2027, and 2044, about R$4 billion

Brief Excerpt:

...SAO PAULO (S&P Global Ratings) Nov. 12, 2018--S&P Global Ratings assigned today its 'brAAA' Brazil national scale issue-level rating to Gerdau S.A.'s (global scale: ###-/Stable/--; national scale: brAAA/Stable/--) proposed R$1.5 billion unsecured debentures due 2022. The rating on the notes is the same as the issuer credit rating. We don't expect any increase in leverage, because the company plans to use proceeds, combined with part of cash proceeds from assets sales to strengthen cash position. In this sense, we expect the company to end 2018 below our estimative of a net debt to EBITDA of 2.5x. Gerdau's capital structure mainly consists of R$14.2 billion in senior unsecured international bonds due 2020, 2021, 2023, 2024, 2027, and 2044, about R$4 billion in working capital funding lines, PP&E financing, and the new R$1.5 billion in senior unsecured debentures. Gerdau's secured debt consists of Finame loans from the Brazilian Development Bank (BNDES), representing less than 1% of the group's...

Report Type:

Ratings Action

Ticker

GGBR4@BZ

Issuer

Gerdau S.A.

GICS

Steel (15104050)

Sector

Global Issuers

Country

Brazil

Region

Latin America

Format:

PDF

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MLA:	S&P Global Ratings’ Credit Research. "Gerdau S.A.'s Proposed R$1.5 Billion Unsecured Debentures Rated 'brAAA' On Brazil National Scale" Nov 12, 2018. Alacra Store. May 08, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Gerdau-S-A-s-Proposed-R-1-5-Billion-Unsecured-Debentures-Rated-brAAA-On-Brazil-National-Scale-2128220>

APA:	S&P Global Ratings’ Credit Research. (). Gerdau S.A.'s Proposed R$1.5 Billion Unsecured Debentures Rated 'brAAA' On Brazil National Scale Nov 12, 2018. New York, NY: Alacra Store. Retrieved May 08, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Gerdau-S-A-s-Proposed-R-1-5-Billion-Unsecured-Debentures-Rated-brAAA-On-Brazil-National-Scale-2128220>

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