Moody's assigns B2 rating to CSN's debt notes on stable outlook

Friday, 17 January 2020 22:38:28 (GMT+3)   |   Sao Paulo

Credit rating agency Moody’s has assigned a B2 rating to Brazil’s Companhia Siderurgica Nacional (CSN) proposed senior unsecured notes of “at least” $500 million to be issued by CSN Island XI Corporation and guaranteed by CSN.

Moody’s said the outlook for the proposed issuance is positive. CSN said it plans to use the money to pay other existing debt.

The credit rating agency said the rating for the proposed notes reflects the company’s leading position as a flat-rolled steelmaker in Brazil, despite noting that ratings remain “constrained by the company's highly leveraged capital structure and weakened credit metrics.”

“The stable outlook reflects our expectation that CSN's liquidity will remain adequate to service its debt obligations. It also reflects our expectation that market conditions for steel producers in Brazil will gradually recover, allowing CSN to direct cash flow from operations to reduce its debt levels,” Moody’s said.

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