The ratings on Gerdau S.A. 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 Brazil, its efficient operations overall, and its "strong" liquidity. Offsetting these rating strengths are Gerdau's exposure to the cyclical, commodity-oriented, long-steel industry; the fierce competition from imports; and the potentially challenging market conditions in the next 12 months to 18 months. Gerdau holds a strong market position in Brazil, and it benefits from geographic and product diversification in the steel industry in the Americas. Gerdau has expanded in specialty steel markets globally, and this segment accounted for about 21% of the company's consolidated
