Fitch upgrades CSN

Fitch Ratings said it upgraded Companhia Siderurgica Nacional's long-term foreign- and local-currency issuer default ratings to BB from BB- and its national scale ratings to AAA(bra) from AA-(bra).

The agency also raised the senior unsecured notes of CSN Inova Ventures, CSN Islands XII Corp., and CSN Resources SA, all guaranteed by CSN, to BB/RR4 from BB-/RR4. The outlook for the international ratings is positive. The outlook for the national rating is revised to stable from positive.

“CSN's ratings reflect its strong iron ore business and strong Brazilian flat steel market position, as well as the cost competitiveness of these businesses. The upgrades follow CSN's continued efforts to substantially strengthen its capital structure including debt repayment, refinancing and asset sales. Elevated iron ore prices and sufficient operational flexibility bolstered FCF for more than two years,” Fitch said in a press release.

CSN cut its debt by $5.3 billion to $2.4 billion as of June 30 from $7.7 billion in 2017 year-end, Fitch noted.

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