Credit rating agency Fitch has upgraded the long-term foreign ratings of flats steelmaker Usiminas to BB- from B+, it said this week.
The steelmaker’s outlook is stable, Fitch said. Additionally, the company’s national scale ratings rose to A+(bra) from A-(bra).
“The upgrade reflects continued improvements in Usiminas' credit risk profile, supported by the deleveraging of its balance sheet, ample liquidity, and manageable cash outflows over the next three years,” the credit rating agency said.
The upgrade in the steelmaker’s ratings comes as Usiminas managed to renegotiate existing debt with Brazilian and Japanese banks.
Commenting the debt restructuring, Fitch noted Usiminas' ability to raise new unsecured debt at “attractive costs” for debt refinancing “would improve liquidity, financial flexibility and further improve its credit risk profile in the short term.”