Fitch downgrades Usiminas

Fitch Ratings said it downgraded Usinas Siderurgicas de Minas Gerais SA's (Usiminas) long-term foreign- and local-currency issuer default ratings to RD (restricted default) from C and national scale rating to RD(bra) from C(bra).

The downgrades follow the conclusion of the company’s debt-restructuring agreement, Fitch said.

The company’s restructuring is considered a distressed exchange because the restructuring imposed a material reduction in terms compared with the original contractual terms, the agency said, and the restructuring was conducted to avoid bankruptcy, insolvency or intervention proceedings.

When further information is available, Fitch said it expects to re-assign low speculative grade issuer default and debt ratings to the company.

The restructuring agreement does result in a significant extension of the maturity date of 92% of the company's debt, the agency added.

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