Fitch rates Siderurgica Nacional bonds BBB-

Fitch Ratings said it assigned a BBB- rating to Companhia Siderurgica Nacional's proposed perpetual bonds up to the amount of $1 billion.

The bonds will be issued through and guaranteed by company's subsidiary, CSN Islands XII Corp. The proceeds will be used to repay the existing $750 million perpetual bonds issued by CSN Islands X Corp. in 2005.

The company has a foreign-currency issuer default rating of BBB-, local-currency issuer default rating of BBB-, national scale rating and local debenture issuances of AA(bra). There is a BBB- rating on the unsecured debt obligations issued by CSN Islands' entities and a BBB- rating on the senior unsecured euro note issued by CSN Resources SA. National Steel SA has a BB rating on its $450 million 9.875% perpetual notes.

The outlook is stable.

The ratings reflect the company's strong financial profile and solid business position as a vertically integrated flat steel producer with a high quality iron ore asset, the Casa de Pedra mine, in Brazil, Fitch said.

The company's credit protection measures are solid for the category considering the weak operating environment faced by the company during 2009 that resulted in low steel prices and volumes, the agency said.

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