Credit rating agency Standard and Poor's (S&P) has downgraded Brazilian steelmaker Companhia Siderurgica Nacional’s (CSN) global and national ratings to BB and bAA-, respectively, on weak market conditions, the agency said, adding that the company's outlook is stable.
According to the agency, the fall in global iron ore prices as well as a weak demand for steel in Brazil will affect CSN's capacity to reduce its debt.
CSN's still-positive outlook reflects S&P’s stance that the leverage and the generation of free cash flow at the Brazilian steelmaker won't deteriorate any more in 2015 and could, eventually, improve in 2016.
The improvement would come through the company's ongoing efforts to reduce operational costs, investments and share of dividends.