Moody’s upgrades Usiminas, notes

Moody's Investors Service said it upgraded the senior unsecured notes ratings of Usiminas Commercial Ltd. (guaranteed by Usinas Siderurgicas de Minas Gerais SA – Usiminas) to Caa1 from Caa2 and affirmed the provisional Caa2 ratings of the backed senior unsecured global medium-term note programs of Usinas Siderurgicas de Minas Gerais SA, Cosipa Commercial Ltd. and Usiminas Commercial.

The outlook is stable.

At the same time, Moody's America Latina upgraded Usiminas' corporate family rating to Caa1 (global scale) from Caa2 and to B3.br from Caa2.br (national scale), with a stable outlook.

Moody’s said the upgrade to Caa1 reflects primarily the conclusion of important steps toward Usiminas' full debt restructuring, including the R$1 billion capital increase concluded in July 2016, the renegotiation with banks and debentures holders completed in September 2016, and more recently, the R$1 billion capital reduction approved at Mineracao Usiminas SA (unrated).

All those events contribute to reduce liquidity pressures in the short-term and will allow the company to focus more closely on its operations, the agency explained.

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