Moody's lifts Gerdau to Ba1

Moody's Investors Service said it upgraded the global local-currency corporate family rating of Brazil-based Gerdau SA to Ba1 from Ba2 following the upgrade to Ba1 from Ba2 of Gerdau Ameristeel Corp., the group's operational subsidiary in North America that represents some 46% of consolidated revenues and 34% of group's EBITDA.

The agency also affirmed the Ba1 global local-currency corporate family of the Brazilian operations of Gerdau (represented by Gerdau Acominas SA, Gerdau Acos Longos SA, Gerdau Acos Especiais SA and Gerdau Comercial de Acos SA) and the Ba1 foreign-currency rating of Gerdau SA's $600 million guaranteed perpetual bonds.

The outlook for the corporate family rating is stable, and the outlook for the remaining ratings is positive. Moody's said the positive outlook reflects Gerdau's maintenance of good operating margins and debt protection metrics, as well as solid liquidity position in spite of the ongoing substantial investment program.

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