Outlook On Gerdau Revised To Stable From Positive On Expected Volatile Metrics; 'BBB-' And 'brAAA' Ratings Affirmed

The operating disruptions resulting from the COVID-19 outbreak will affect Brazilian steel producer Gerdau's credit metrics in the next few months, because the company has had to suspend or reduce its activities in most countries where it operates. In this context, the gradual improvement in the company's credit metrics we previously expected will be hampered, and leverage would temporarily pick up, although mitigated by the company's potential countercyclical actions. As a result, on March 25, 2020, S&P Global Ratings revised the outlook on Gerdau S.A. (Gerdau) and Gerdau Ameristeel Corp. to stable from positive, and affirmed the global scale 'BBB-' issuer credit ratings on both companies. We also affirmed our 'brAAA' Brazil national scale rating on Gerdau, and the outlook

...March 25, 2020 - The operating disruptions resulting from the COVID-19 outbreak will affect Brazilian steel producer Gerdau's credit metrics in the next few months, because the company has had to suspend or reduce its activities in most countries where it operates. - In this context, the gradual improvement in the company's credit metrics we previously expected will be hampered, and leverage would temporarily pick up, although mitigated by the company's potential countercyclical actions. - As a result, on March 25, 2020, S&P Global Ratings revised the outlook on Gerdau S.A. (Gerdau) and Gerdau Ameristeel Corp. to stable from positive, and affirmed the global scale '###-' issuer credit ratings on both companies. We also affirmed our 'brAAA' Brazil national scale rating on Gerdau, and the outlook on this rating remains stable. - At the same time, we affirmed all of our '###-' global scale and 'brAAA' national scale issue-level ratings on Gerdau. - The stable outlook reflects our view that...

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