Credit rating agency Fitch has affirmed the ratings of Brazilian integrated steelmaker Gerdau at BBB–, while noting that the company’s outlook is stable.
The credit rating agency said the investment grade ratings reflect the company’s strong commitment with a solid capital structure, its long-term debt profile, its liquidity and flexible operational structure in the Americas.
Fitch said Gerdau’s ratings allow the company to honor its financial debts outside Brazil. The agency also noted that Brazilian domestic steel prices should remain high in 2021. Citing industry sources, Fitch said domestic demand for long steel in 2021 should increase 7 percent, year-over-year.