S&P affirms Companhia Siderurgica Nacional

Standard & Poor's said it affirmed its BB long-term corporate credit rating on Companhia Siderurgica Nacional (CSN) after the announcement of its association with Wheeling-Pittsburgh Corp. (unrated).

The outlook is stable.

The agency said that the companies jointly announced an association under which CSN will become the ultimate shareholder of 49.5% of a new entity that will hold WPSC's operations in Ohio, West Virginia and Pennsylvania, as well as CSN's finishing facilities in Terre Haute, Ind.

According to the agency, implications to CSN's credit quality, if the deal is successfully concluded as announced, are an improvement of CSN's operations in the United States, by leveraging up its market position and providing it with more operating integration, establishment of a more robust distribution platform in the United States and Canada and securing of demand for the expanding slab production capacity to be originated in Brazil.

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