Fitch Drops CSN into HY

Fitch Drops CSN into HY

Brazil Corporate & Sovereign Strategy

Fitch has lowered Companhia Siderurgica Nacional’s (CSN) credit rating to BB+ from BBB minus, it says, amid a trend of Brazilian steel becoming less competitive. A “fundamental and prolonged” change in competitiveness and lower seaborne iron ore prices have cut into the Brazilian steelmaker’s profitability and increased its leverage ratios. Margins could be in the 20%-25% range going forward, versus 40% historically, Fitch says. “While CSN's operating environment has weakened, the company has no

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