Moody's rates Vale notes Baa2

Moody's Investors Service said it assigned a Baa2 senior unsecured foreign-currency rating to the notes due 2022 issued by Vale Overseas Ltd. under its well known seasoned issuer shelf.

The notes are guaranteed by Vale SA.

The proceeds will be used for general corporate purposes.

The agency also said it affirmed Vale SA's Baa2 global local-currency rating, its provisional Baa2 senior unsecured rating and Aaa.br Brazilian national scale rating.

Moody's also said it affirmed the Baa2 ratings on the foreign-currency debt issues of Vale Overseas and its provisional Baa2 senior unsecured shelf rating.

The agency also said it affirmed the Baa2 senior unsecured ratings of Vale Canada.

The outlook is stable.

The ratings reflect the company's diversified product base, strong coverage ratios, competitive cost position and substantive portfolio of long-lived assets, Moody's said.

The ratings also consider the challenges that will continue to impact the company's operating cost profile, particularly as volumes increase and prices of key input materials continue to rise in response to growing global demand, the agency said.

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