Fitch gives Samarco notes BBB

Fitch Ratings said it assigned Samarco Mineracao SA's proposed senior unsecured notes of benchmark size maturing 2023 an expected rating of BBB(EXP).

The notes will be issued directly through Samarco and the proceeds will be used to partially fund capital expenditures and for general corporate purposes.

The outlook is stable.

Fitch said Samarco's ratings and stable outlook are supported by its joint ownership under two industry leaders, Vale SA (long-term issuer default rating BBB+) and BHP Billiton Ltd./plc (long-term issuer default rating A+), with each company owning 50% of Samarco.

The agency said it believes Samarco's two strong shareholders, with combined operating EBITDA in 2012 of over $51 billion, would support Samarco in the event of a sovereign-related liquidity crisis due to reputational risk.

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