Moody's upgrades Gerdau

Moody's Investors Service said it upgraded the ratings Gerdau Trade Inc.’s debt issues, guaranteed by Gerdau SA and its operating subsidiaries in Brazil, and of GTL Trade Finance Inc., guaranteed by Gerdau and its operating subsidiaries in Brazil, to Baa3 from Ba1.

Concurrently, Moody's gave a Baa3 issuer rating to Gerdau SA and withdrew its Ba1 corporate family rating.

“The upgrade of Gerdau's ratings to Baa3 from Ba1 reflects the company's history of conservative capital allocation, which combined with Moody's expectations of strong operating performance throughout 2021, will contribute to further deleveraging and balance sheet strengthening. Gerdau has paid down $3.7 billion in total debt since 2014 and streamlined operations through asset sales and optimization of its operating capacity. The company has also maintained a disciplined approach to liquidity, investments and dividend distributions,” the agency said in a press release.

The outlook is stable.

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