• The steelmaker's issue-level rating was lowered to C
  • Company agreed to a 120-day standstill accord with banks

Usinas Siderurgicas de Minas Gerais SA had one of its its credit ratings lowered to selective default by Standard & Poor’s after the Brazilian steelmaker reached a standstill agreement with banks.

The global scale corporate credit rating was cut to SD from CCC+, while the issue-level rating was lowered to C, S&P said in a statement Tuesday.

Usiminas, as the company is known, agreed to a 120-day standstill accord with its main bank creditors last week.

“We consider this to be a negotiation under distress, and thus tantamount to default,” S&P said.

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