S&P cuts CSN rating to B-: 7.6x leverage weighs on CSN Siderurgica stock

Published on 10/28/2026 at 05:41 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

S&P cuts CSN's rating to B- from B on October 20, 2026. The outlook leaves CSN Siderurgica stock tied to 7.6x leverage.

Credit pressure and reporting dates

S&P Global Ratings cut CSN's issuer rating to B- from B on October 20, 2026.
Second-quarter revenue reached BRL 11.31 billion and GAAP net loss reached BRL 794.12 million.
CSN's third-quarter earnings release is scheduled for November 9, 2026.

CSN Siderurgica, BRCSNAACNOR6, Illustration mit AI erstellt.

CSN Siderurgica (ISIN BRCSNAACNOR6) faces a credit downgrade to B- from B after S&P Global Ratings acted on October 20, 2026. The agency projected adjusted debt to EBITDA of 7.6x for 2026, compared with its previous expectation of below 6.0x, putting leverage and cash generation at the center of the stock story.

Three events reshaped the outlook

CSN reported second-quarter revenue of BRL 11.31 billion and a GAAP net loss of BRL 794.12 million for the period ended June 30, 2026, compared with revenue of BRL 10.69 billion and a GAAP net loss of BRL 130.37 million a year earlier, according to Markets Insider on October 20, 2026.

On October 9, 2026, CSN signed a term sheet to sell its German long-steel unit to Spain's Megasa for USD 616 million, as MarketScreener reported. The transaction offers a deleveraging route, but the rating agency said asset sales must be executed effectively to materially improve credit metrics.

What does 7.6x leverage mean?

S&P Global Ratings forecast consolidated adjusted EBITDA of BRL 7.7 billion for 2026, down from BRL 10.1 billion in its previous estimate and below the BRL 8.8 billion realized in 2025. It also projected negative free operating cash flow of BRL 2.7 billion in 2026 and BRL 1.1 billion in 2027, while capital expenditure was estimated at BRL 6.2 billion for 2026.

Upcoming results dates

Two dates matter for the next information cycle. MarketScreener lists November 9, 2026 for the third-quarter earnings release, while the company's investor-relations page schedules its third-quarter 2026 earnings release for November 12, 2026 after the market close. The differing calendar entries make the reporting date a key near-term reference.

Credit pressure remains the central issue

CSN combines steel, mining, logistics, cement and energy operations, so asset sales and mining performance will shape how quickly leverage can improve. The next earnings release will show whether operating cash flow is moving toward the rating agency's 2026 assumptions.