Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers V > Headlines for Vale SA > News item |
S&P rates Vale Overseas notes BBB+
Standard & Poor's said it assigned a BBB+ rating to the forthcoming guaranteed notes to be issued by Vale Overseas Ltd., a wholly owned subsidiary of Vale SA. The company said it expects to issue up to $1 billion in notes due in 2020.
The rating reflects the credit quality of Vale, which irrevocably and unconditionally guarantees the notes. The notes will rank equal to Vale's other unsecured and unsubordinated debts.
The rating reflects the company's strong business profile, characterized by its leading position in seaborne iron ore and a favorable one in nickel, S&P said.
Other factors include its improved geographic and product diversification and a competitive cost structure in most metal commodities the company produces, the agency said.
These positives are partly offset by the risks associated with industry cyclicality, the company's acquisitive business strategy and robust dividend distribution, S&P said, and some dependence on China's economic performance.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.