Despite a weak scenario for the global steel industry, Gerdau S.A. has maintained adequate cash flow generation. We are affirming our 'BBB-' global scale and 'brAAA' national scale ratings on Gerdau. The stable outlook reflects our expectation that Gerdau will manage to improve its credit metrics--even under a scenario of weak prices and lower margins. On Oct. 18, 2012, Standard&Poor's Ratings Services affirmed its 'BBB-' global scale and 'brAAA' national scale ratings on Brazil-based steel maker Gerdau S.A. The outlook remains stable. The ratings on Gerdau reflect our assessment of the company's "satisfactory" business risk profile and "intermediate" financial risk profile. The supporting factors are Gerdau's adequate geographic diversification throughout the Americas, the company's still-favorable cost position in
