Moody's affirms Usiminas; outlook negative

Moody's Investors Service said it affirmed the Baa3 global-scale senior unsecured issuer rating of Usinas Siderúrgicas de Minas Gerais SA - Usiminas and downgraded its Brazil national-scale rating to Aa1.br from Aaa.br.

At the same time, Moody's said it affirmed all existing debt ratings on the global-scale of Usiminas and downgraded the Brazilian national-scale rating of its 500 million reais local currency subordinated unsecured debentures due 2013 to Aa2.br from Aa1.br.

The outlook was changed to negative from stable.

The rating action reflects the company's weakened operating performance in light of deteriorated market conditions for the global steel industry and its expectation that the recovery in the global steel industry will be slow, with a sustained period of lower prices and spare capacity, Moody's noted.

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