Credit rating agency Standard & Poor's (S&P) has upgraded the ratings of Brazilian flats steelmaker Usiminas to “B+” from “B” on a lower forecast leverage and stronger liquidity. The steelmaker’s outlook remains stable, S&P said.
“Brazilian steelmaker Usiminas was able to refinance a significant portion of its debt, improving financial flexibility and liquidity. In addition, soaring iron ore prices and mildly favorable market conditions for steel will help the company's deleveraging in 2019,” the credit rating agency said.
The credit rating upgrade was due to the company’s successful debt refinancing. S&P said the stable outlook reflects the credit rating agency’s view that the company will “gradually deleverage in the next few years thanks to a stronger free operating cash flow (FOCF) generation, despite higher investments, while maintaining adequate liquidity levels.”