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Bond Market News
CSN Downgraded to B2 by Moody’s
February 20, 2026
Companhia Siderúrgica Nacional (CSN) was downgraded by two notches to B2 from Ba3 by Moody’s. The backed senior unsecured notes issued by CSN Resources S.A. and CSN Inova Ventures were also downgraded by the same measure to B2. The downgrade primarily reflects CSN’s significant leverage and refinancing risk. Moody’s expects leverage to stay around 5.0-6.0x over the next 12-18 months amid softer steel and iron-ore prices, with potential longer-term improvement to 4.0-5.0x if commodity prices normalize and deleveraging occurs. According to Moody’s, CSN’s liquidity is currently adequate, with BRL 16.5bn ($3.2bn) in consolidated cash. However it highlighted that the company’s existing cash burn and upcoming bank-debt refinancing create medium-term risk. CSN had earlier announced plans to raise BRL15-18bn ($2.9-3.5bn) by selling a minority stake in its infrastructure assets and a majority stake in its cement business to reduce debt and ease liquidity pressures. Moody’s added that CSN’s credit metrics remain weak and that its exposure to market volatility remain elevated until these transactions are completed. The rating agency also stressed on CSN’s structural issues where most of its debt sits at the holding company while most cash is generated by the mining subsidiary.
CSN’s dollar bonds were stable with the 5.875% 2032s trading at 71.6, yielding 12.69%.
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