Moody's rates Siderúrgica Nacional notes Ba1

Moody's Investors Service said it assigned a Ba1 foreign-currency rating to the proposed $1 billion senior unsecured perpetual notes issuance of CSN Islands XII Corp. (Cayman Islands) to be irrevocably and unconditionally guaranteed by Companhia Siderúrgica Nacional.

The outlook is stable.

The proceeds will be used primarily to prepay $750 million in outstanding guaranteed perpetual notes issued in 2005 by CSN Islands X Corp. and for liability management, thus not affecting the company's overall leverage metrics on a net debt basis.

The agency said the ratings are the same as the company's corporate family rating, reflecting the low level of secured debt on a consolidated basis and the fact that the large majority of consolidated debt is either at or guaranteed by Siderúrgica Nacional.

The ratings reflect its position as a leading manufacturer of flat-rolled steel in Brazil, with a favorable product mix focused on value-added products, Moody's added.

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