S&P affirms Gerdau, Gerdau Ameristeel ratings

S&P said it affirmed its global scale ratings on Gerdau SA (Gerdau) and Gerdau Ameristeel Corp., including the BBB- corporate credit and debt ratings.

S&P also affirmed the brAAA Brazil national scale ratings on Gerdau.

The outlook on both corporate ratings remains negative.

S&P said the ratings affirmation reflects its expectation that Gerdau will maintain its deleveraging trend despite weak volumes in Brazil, which represents around 35% of the company's EBITDA. S&P expects the company’s debt to EBITDA to drop below 4x in 2017, thanks to resilient margins in the U.S. operations and increasing profitability in Latin American operations, excluding Brazil.

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