On Nov. 19, 2007, Standard&Poor's Ratings Services affirmed its 'BBB-' long-term corporate credit rating on Brazil-based steel maker Gerdau S.A. (Gerdau). The outlook is negative. The affirmation follows Gerdau's announcement that it reached agreement to acquire Quanex Corp.'s (Quanex; BBB-/Stable/--) special bar quality (SBQ) business for approximately $1.46 billion plus debt. Prior to Gerdau's acquisition of all outstanding common shares, Quanex will spin off its building-products business as a stand-alone company. The transaction is also subject to approval by Quanex's shareholders, regulatory approvals, and other customary closing conditions, and we expect the deal to close by the end of first-quarter 2008. Gerdau announced that it intends to fund the acquisition with existing cash reserves (of $2.7 billion as
