Moody's: Gerdau unchanged

Moody's Investors Service said it commented that weaker than expected fourth quarter 2008 results of Gerdau SA and of its subsidiary Gerdau Ameristeel Corp. will have no immediate impact on their Ba1 corporate family ratings or their stable outlook.

Moody's said it still anticipates that the group's leverage will remain within a tolerable range for the current ratings on a full-year 2009 basis and liquidity is strong at both companies.

Ameristeel is rated the same as Gerdau, reflecting Moody's view of high correlation based on the strong support provided by Gerdau and its Brazilian subsidiaries to the North American subsidiary.

Despite the weak fourth quarter performance in North America and Latin America (ex-Brazil), the agency said it expects some improvement in the group's operating margins in the first quarter of 2009 as benefits from operational adjustments materialize.

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