September 08, 2008

Fitch upgrades Sidetur ratings

It is reported that Fitch Ratings has affirmed its B+ foreign and local currency issuer default ratings on Venezuelan steel company Sidetur, as well as its B+/RR4 ratings on Sidetur's USD 100 million unsecured notes due 2016.

Fitch in a statement said that the ratings service also upgraded Sidetur's national scale rating to A+ from A- and the outlook is stable. It added that the actions reflect the Sidetur's improving financial profile and solid position as one of Venezuela's two leading steelmakers, with 42% of the rebar market. Sidetur also benefits from relationships with large steel distributors, wholesalers and retailers in the country.

Sidetur a subsidiary of Siderúrgica Venezolana issued the bonds mid last year and took out a USD 32 million loan, which together allowed it to refinance its debt and buy back 15% of its shares.

Sidetur makes billets, reinforcing bars, angles, beams and other products and churned out 577,000 tonnes of crude steel and 527,000 tonnes of rolled or finished products in fiscal year 2007.