...- Brazilian steelmaker Gerdau S.A. has sustained low leverage and sound liquidity, even amid low prices in its main markets. The company posted adjusted debt to EBITDA of 0.8x and FFO to debt of 87.5% in the 12 months ended June 30, 2024, despite its EBITDA margin falling to 16% from 21% in the same period last year. - At the same time, free operating cash flow (FOCF) has remained robust, in spite of the company's significant capex plan. - As a result, we raised our issuer credit ratings on Gerdau S.A. and Gerdau Ameristeel Corp. to '###' from '###-'. We also raised our issue ratings on their senior unsecured notes to '###' from '###-'. At the same time, we affirmed our 'brAAA' Brazil national scale rating on Gerdau and on its senior unsecured debentures. - The stable outlook reflects our expectation that margins in Brazil will recover and Gerdau will sustain low leverage and robust FOCF, despite significant investment plans, as well as conservative financial policies....
