Fitch Ratings downgraded Companhia Siderurgica Nacional’s (CSN) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to BB- from BB, and its National Long-Term ratings to AA-(bra) from AAA(bra). The agency also cut ratings for CSN Inova Ventures, CSN Resources, and CSN Mineracao, placing all ratings on Rating Watch Negative (RWN).

The downgrade reflects CSN’s persistently high leverage, continued negative free cash flow, and elevated refinancing risk. Fitch highlighted total leverage as a key rating trigger, noting that the company’s deleveraging plan depends on asset divestments. Proposed sales of cement and infrastructure stakes could generate BRL 15 to 18 billion, though they would reduce business diversification.

Fitch forecasts leverage to decline gradually by 2026, while mining operations are expected to support EBITDA growth despite challenging steel market conditions. Negative cash flow is likely to continue for the next three years. Governance and shareholder commitment remain critical to mitigating rating risks under Fitch’s updated criteria.