Credit rating agency Fitch has upgraded the long-term ratings of Brazil’s Companhia Siderurgica Nacional (CSN) from BB- to BB, on a positive outlook.
The company’s long-term domestic ratings were also upgraded to AAA(bra) from AA-(bra), along with the improvement of CSN’s unsecured foreign bonds.
Fitch said the upgrades reflect CSN’s “solid” iron ore business and its strong position in the Brazilian flat steel business. “The upgrades follow the continuous efforts of CSN to substantially strengthen its capital structure, including debt payment, refinancing and asset sales,” the agency said.
The steelmaker’s positive outlook is due to Fitch’s assumption that CSN will be able to further reduce debt within the next 12 to 18 months.