Fitch revises Gerdau's outlook to positive; affirms long-term IDR at 'BBB'

Fitch Ratings has affirmed Gerdau S.A.'s long-term issuer default rating (IDR) at 'BBB' and revised the outlook to positive from stable. The upgrade in outlook reflects improved financial metrics and operational performance, which have strengthened the company's credit profile. Gerdau, a leading global steel producer, continues to demonstrate resilience amid evolving market conditions. The 'BBB' rating indicates an adequate capacity to meet financial commitments, although it may be more vulnerable to adverse economic conditions compared to higher-rated peers. Fitch noted that the positive outlook considers the company's strategic initiatives, including cost optimization and diversification efforts, which are expected to enhance long-term stability. Investors should consider that while the rating remains investment-grade, any downgrade in global economic sentiment or operational challenges could impact future creditworthiness. The affirmation and outlook revision underscore Fitch's confidence in Gerdau's ability to maintain its credit profile over the near term.