S&P rates Gerdau unit’s notes BBB-

S&P said it assigned a BBB- rating to Gusap III LP’s proposed $500 million senior unsecured notes due 2030. This entity is wholly owned by Gerdau SA, which is rated BBB-.

Gerdau with its subsidiaries Gerdau Açominas SA and Gerdau Acos Longos SA will irrevocably and unconditionally guarantee the proposed notes, the agency said.

“We rate senior unsecured debts of Gerdau and its subsidiaries at the same level as our issuer credit rating on the parent because it has limited secured debt. Therefore, in our view, credit prospects of unsecured debt holders aren’t at disadvantage,” said S&P in a press release.

S&P said it views the offering as credit neutral.

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