S&P Affirms Usiminas Rating, Outlook

S&P has affirmed Brazil-based Usiminas’ BBB minus rating and its stable outlook. The agency says the ratings are supported by the steel company’s low gross debt leverage and adequate liquidity as well as favorable growth fundamentals. Total adjusted debt to Ebitda amounted to 2.9x as of June 30. It also has BRL3.6bn in cash and BRL597m in short-term debt. “We believe Usiminas will be able to maintain adequate credit metrics, even assuming higher capital expenditures and conservative price assumptions,” S&P says.