Fitch rates Vale eurobond BBB

Fitch Ratings said it assigned a BBB rating to Vale SA's proposed eurobond. This bond will be issued directly through Vale. Net proceeds will be used for general corporate purposes. Vale's local-currency issuer default rating is BBB, foreign-currency issuer default rating is BBB and national scale rating is AAA(bra).

The outlook is stable.

A drop in Vale's profitability was a result of lower prices and volumes for most of its products, particularly iron ore, the agency said.

The company's financial results also were negatively impacted by strikes at some of its Canadian nickel operations, Fitch said.

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