S&P rates International Nickel loan BBB+

Standard & Poor's said that it assigned a BB+ long-term corporate credit rating to PT International Nickel Indonesia and a BBB+ rating to its $300 million senior export facility agreement, consisting of a $200 million loan from the Bank of Tokyo-Mitsubishi Ltd. and a $100 million loan from Mizuho Corporate Bank Ltd.

The outlook is stable.

The BBB+ facility rating reflects a corporate guarantee provided by Vale SA (BBB+/stable).

The ratings are primarily constrained by product and geographic concentration and exposure to risks inherent to operating a mining concession in Indonesia, S&P said.

The ratings consider the company's low cost profile, long-lived reserves, conservative financial profile, moderate debt leverage and solid cash flow protection measures, the agency said.

As of December 2010, the adjusted total debt-to-EBITDA ratio was 0.3 times.

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