Fitch upgrades Vale

Fitch Ratings said it upgraded the foreign- and local-currency long-term issuer default ratings of Vale SA to BBB from BBB-. Also, Fitch upgraded the senior unsecured debt ratings of Vale SA, Vale Overseas Ltd. and Vale Canada Ltd. to BBB from BBB-. Fitch also affirmed Vale’s national long-term rating at AAA(bra).

“These rating actions reflect steps taken by Vale over the past 18 months that have lowered the risk of future dam failures and the implications upon the environment and people in the surrounding community should they occur. The rating actions also take into consideration Vale’s extremely low leverage and strong free cash flow, which position it to withstand any sharp downturn in iron ore prices or unexpected legal liabilities that relate to the Brumadinho dam failure,” Fitch said in a press release.

The outlook remains stable.

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