Moody's confirms Gerdau

Moody's Investors Service said it confirmed the Ba1 corporate family ratings of Gerdau SA and Gerdau Ameristeel Corp. and of Gerdau Acominas SA, Gerdau Acos Longos SA, Gerdau Acos Especiais SA and Gerdau Comercial de Acos SA.

The confirmation concludes the review that began on July 11 after Ameristeel agreed to acquire Chaparral for $4.2 billion in cash.

The outlook is stable.

According to the agency, despite the significant debt added to Gerdau's consolidated balance sheet, overall credit metrics and liquidity position pro forma for the deal remain supportive of its current Ba1 rating.

The company's gross debt-to-EBITDA ratio will peak at about 2.4 times pro forma including twelve months of Chaparral operations, Moody's said.

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