The leading global ratings agency Fitch Ratings has assigned a BBB- rating to Brazilian steelmaker Companhia Siderurgica Nacional's (CSN) proposed U$500 million to $1 billion Euro notes maturing in 2020. The notes will be issued through CSN's subsidiary, CSN Resources SA, and will be unconditionally and irrevocably guaranteed by CSN. Net proceeds from the proposed issuance will be used for general corporate purposes.
Fitch said that the BBB- rating on the notes reflects the strong financial profile and solid business position of CSN. As of March 31, 2010, CSN had BRL 9.3 billion ($5.2 billion) of cash and marketable securities and BRL 15.8 billion ($8.6 billion) of total adjusted debt. Liquidity is manageable with only BRL 1.2 billion ($680 million) and BRL 2.1 billion ($1.2 billion) of short-term debt maturing during 2010 and 2011.