S&P revises Gerdau outlook to positive

S&P said it revised its outlook on Gerdau SA and its subsidiary Gerdau Ameristeel Corp. to positive from stable and affirmed their BBB- ratings and Brazilian national scale ratings.

“Gerdau is posting record EBITDA amid high steel prices in Brazil and metals spread in the U.S., its two main markets. The company's higher exports should offset the likely high-single digit drop in volumes for the Brazilian market in 2022, due to weaker demand after the completion of the restocking of the chain in 2021. In the U.S., demand remains resilient in the construction and industrial sectors, with Gerdau's plants operating at more than 90% of capacity,” S&P said in a press release.

Additionally, the agency said it projects Gerdau to continue delivering free operating cash flow of more than R$6 billion.

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