Moody's Sees CSN Progress as Insufficient

Moody's Local reported on 4 September 2026 that operational and financial progress at Companhia Siderúrgica Nacional remains insufficient to change its risk profile. The rating agency kept CSN under review for a possible credit downgrade.

Analysts Alain Nicolau, Patricia Maniero, and Felipe Lima highlighted signs of recovery in the steel unit, where the Ebitda margin rose to 10.5% in the second quarter. Weak steel demand still curbs price increases, while mining and cement remain the primary earnings drivers, with cement reaching a record Ebitda during the quarter.

CSN also extended bank debt maturities and exchanged most 2028 bonds for new notes due in 2030. Leverage remains high at 5.4 times Ebitda, leaving the company reliant on asset sales to lower refinancing risks.

Moody's expects the sale of the cement operation to conclude in the third quarter. The agency noted that this transaction will be only a partial solution, requiring stronger steel profitability and further planned divestments to restore the company's credit standing.