Moody’s revises Gerdau to negative

Moody's Investors Service said it changed the outlook for Gerdau SA and related ratings to negative from stable.

At the same time, the agency affirmed Gerdau's Baa3 issuer rating, and the Baa3 ratings on the foreign currency debt issues of Gerdau Trade Inc. (guaranteed by Gerdau and its operating subsidiaries in Brazil) and on the local currency debt issues of GTL Trade Finance Inc. (guaranteed by Gerdau and its operating subsidiaries in Brazil), as well as the industrial revenue bonds issued by Jacksonville Economic Development Commission (guaranteed by Gerdau) and the solid waste disposal bonds issued by St Paul, Minn., Port Authority (guaranteed by Gerdau).

Moody’s said the affirmation and change in outlook reflect its view that the company's credit profile and operations remain solid, but incorporate the deterioration in market fundamentals for the steel industry in Brazil, and the continued challenges for the global steel industry.

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