- 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.