Moody’s upgrades CSN, debt

Moody's Investors Service said it upgraded the ratings assigned to the senior unsecured notes of CSN Islands XI Corp., CSN Islands XII Corp. and CSN Resources SA that are guaranteed by Companhia Siderurgica Nacional SA (CSN) to B3 from Caa2.

At the same time, Moody's America Latina upgraded CSN's global scale rating to B3 from Caa2 and national scale rating to B2.br from Caa2.br.

The outlook was changed to stable from negative.

Moody’s said the upgrade primarily reflects the conclusion of the refinancing of CSN's bank debt with Banco do Brasil SA (Ba2 negative) and the expectation that the company will conclude the refinancing of its maturities with Caixa Economica Federal (Ba2 negative) soon.

Together, both banks hold a substantial portion of CSN's bank debt (about R$14 billion or 48% of the total reported debt).

The debt refinancing removes more immediate liquidity pressures and allows CSN to focus on additional measures to address the upcoming debt maturities, mostly concentrated in 2019 and 2020 (R$12.5 billion in total, reflecting the debt refinancing with BB and Caixa Economica Federal) and including the $1.95 billion related to the 2019 and 2020 senior unsecured notes, the agency explained.

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