Moody’s raises Usiminas to B2/Ba1.br

Moody's America Latina said it upgraded Usinas Siderurgicas de Minas Gerais SA’s (Usiminas) corporate family ratings to B2 from Caa1 on the global scale and to Ba1.br from B3.br on the national scale.

The outlook is stable.

“The upgrade of Usiminas ratings to B2 reflects primarily the conclusion of its debt renegotiation process with the amortization of the 2018 bonds issued by Usiminas Commercial Ltd., which has removed liquidity pressures and allows the company to further focus on its operations,” Moody’s said in a news release.

“The upgrade also incorporates the expectation that credit metrics will gradually improve, supported mainly by a slow, but gradual recovery in Brazil's steel industry, and that the company will be able to generate positive free cash flows in the coming years.”

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