CSN Gets S&P Upgrade

S&P has upgraded the ratings of Brazilian steel company CSN to BBB minus from BB+ to reflect the company’s operating performance, which it says has been stronger than that of its peers even during the market slowdown of 2008 and part of 2009. “We believe CSN will consistently sustain strong liquidity, as it has historically, mitigating its aggressive gross leverage ratios,” S&P says. It adds that its projections suggest that the company’s net debt ratios are adequate for the rating category, even using conservative steel price assumptions, despite CSN’s ongoing large, but partly discretionary, capital expenditures program and aggressive dividend distribution. S&P says the company reported BRL9.7bn in cash as of June, compared with BRL1.4bn in short-term debt.