Brazil-based steel maker Gerdau has implemented actions to reduce total debt and adjust its cost structure to the more adverse market environment. The ratings on Gerdau remain on CreditWatch with negative implications. We expect to resolve the CreditWatch in the next months, as we obtain more clarity on the potential positive effects of the company's actions. On June 3, 2009, Standard&Poor's Ratings Services said that its ratings, including the 'BBB-' long-term counterparty credit rating, on Gerdau S.A. remain on CreditWatch with negative implications, where they were placed on Feb. 26, 2009. The CreditWatch listing reflects our views of Gerdau's weakening cash flows and credit metrics in the currently challenging market environment. Although market conditions have been improving since
