We believe deterioration in Gerdau's credit metrics will be temporary and these will converge to more comfortable levels in 2010. We affirmed our 'BBB-' rating on Gerdau and removed it from CreditWatch Negative. Gerdau's credit metrics will likely remain depressed during the next few quarters. On Sept. 3, 2009, Standard&Poor's Ratings Services affirmed its 'BBB-' long-term corporate credit rating on Brazil-based steel maker Gerdau S.A. and removed it from CreditWatch Negative, where it was initially placed Feb. 26, 2009. The outlook is negative. The rating action reflects our view that the deterioration of Gerdau's credit measures will be temporary and that these will return to more comfortable levels by 2010, as the market recovers (although slowly) and the
