Moody's upgrades Votorantim, notes

Moody's Investors Service said it upgraded Votorantim SA’s corporate family rating and the notes issued by Companhia Brasileira de Aluminio, an investee, and guaranteed by Votorantim, to Baa3 from Ba1. The company's previously assigned Aaa.br national scale rating remains unchanged.

“The upgrade of Votorantim's ratings to Baa3 from Ba1 reflects the group's strengthened consolidated capital structure following several deleveraging initiatives carried-out over the past few years, which will allow the company to maintain lower than historical leverage ratios through commodity cycles. Votorantim has paid down $3.7 billion in consolidated total debt since 2015, using its strong internal cash generation and part of the proceeds from the IPO of Nexa Resources SA (Ba2 stable) and the sale of Fibria's shares, while maintaining a disciplined approach to liquidity, investments, growth and dividend distributions,” Moody’s said in a press release.

The outlook is stable.

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