Fitch says CSN has decisive year ahead, as debts are due
Tuesday, 17 January 2017 21:40:32 (GMT+3)
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Sao Paulo
Credit rating agency Fitch Ratings has said Brazilian steelmaker Companhia Siderurgica Nacional (CSN) has a “decisive year” ahead, as the company faces “important challenges” over the refinancing of its short-term debt and asset sales.
According to Fitch, along with expectations of improving iron ore price fundamentals, CSN's ability to increase steel sales volumes as planned and sustain rises in local steel prices will be “fundamental to allow a rebound in cash flow.”
“A failure to refinance a large part of its BRL 7.9 billion ($2.45 billion) of local banking debt, due in 2018, during the first-half 2017 would lead to a downgrade to 'CCC',” said Debora Jalles, Director at Fitch.
By the other hand, a successful asset sales in the same range or BRL 8 billion range would lead to an improvement in leverage ratios, “potentially allowing CSN to refinance its bonds issuances due 2019 and 2020 during 2018.”
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