Brazilian steelmaker Companhia Siderurgica Nacional (CSN) has decided not to pay shareholders dividends, following a court decision earlier this week that sought to suspend the payment of BRL 890 million in dividends.
Credit rating agency Fitch Ratings labeled the move as “aggressive” and “extraordinary.” CSN said it will now use the proceeds to pay debt.
Fitch noted the “aggressive” dividend payment coincided with a period of “continued strain on the company’s capital structure and it heightens the repayment risk of CSN’s $480 million of notes maturing on Sept. 21, 2019 and $870 million of notes due in 2020.”