Strong operating efficiencies and geographical diversification of Brazil-based steel producer, Gerdau, will likely offset weaker market conditions in Brazil. At the same time, we expect business conditions in North America to gradually improve, fostering steel demand and increasing capacity utilization. We are affirming our 'BBB-' global scale and 'brAAA' national scale ratings on the company. The stable outlook reflects our expectation that credit metrics will slightly improve. On Nov. 27, 2014, Standard&Poor's Ratings Services affirmed its 'BBB-' global scale and 'brAAA' Brazil national scale ratings on Gerdau S.A. (Gerdau). We are also affirming our 'BBB-' rating on Gerdau Ameristeel Corp., Gerdau's North American subsidiary. The outlooks on all the ratings are stable. The ratings on Gerdau continue to
