SAO PAULO (Standard&Poor's) April 8, 2013--Standard&Poor's Ratings Services said today that it assigned its 'BBB-' debt rating to Gerdau Trade Inc.'s proposed senior unsecured notes. The rating reflects our rating on its parent company, Brazil-based steel producer Gerdau S.A. (Gerdau; BBB-/Stable/--), because it unconditionally and irrevocably guarantees the notes. The notes will rank equal to Gerdau's other unsecured and unsubordinated debt. We expect Gerdau to use the proceeds to improve its capital structure, by paying down short-term debt as it comes due, and extend its debt amortization schedule. The ratings on Gerdau reflect our assessment of the company's "satisfactory" business risk profile and "intermediate" financial risk profile. Supporting factors are Gerdau's adequate geographic diversification throughout the
