Moody's lowers CSN Islands, CSN Resources

Moody's Investors Service said it downgraded the foreign-currency rating assigned to the senior unsecured notes of CSN Islands XI Corp., CSN Islands XII Corp. and CSN Resources SA to Caa2 from Caa1.

The ratings are guaranteed by Companhia Siderurgica Nacional (CSN), Moody's said.

The agency also downgraded CSN's global scale rating to Caa2 from Caa1 and national scale rating to Caa2.br from B3.br.

The outlook remains negative.

The downgrades reflect the tight liquidity position faced by CSN, which is exacerbated by the fact that CSN has not yet filed audited financial statements for fiscal year 2016 and a concern about potential liquidity pressures that could arise as a consequence, Moody's said.

The agency also acknowledged that the company is focusing on actions that are under its control and working with its auditor to release these statements over the next few months, the agency said.

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