The ratings of three Brazilian steel and mining groups were not affected by the downgrade of Brazil’s sovereign, long-term foreign currency rating to BB- from BB, credit rating agency Fitch Ratings said this week.
The recent downgrade of Brazil’s credit rating due to growing government debt and the nation’s failure to legislate reforms that would improve the structural performance of public finances also led to a downgrade in the ratings of a number of local companies, Fitch said.
Fitch did not include any Brazilian steelmakers in the “downgrade list,” but it specifically said Brazilian steelmaker Gerdau, industrial holding Votorantim and its subsidiaries, as well as iron ore producer Vale were not affected by the massive downgrades.
The companies with downgraded ratings included those in the energy, pharmacy, oil, and logistics sectors.