Fitch rates Vale notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Vale SA's re-opening of $1 billion 4.375% notes due Jan. 11, 2022 that were issued by Vale Overseas.

The re-opening will carry the same rating as the original deal of BBB+.

These notes have been unconditionally guaranteed by Vale and were originally issued during January 2012. Proceeds from this transaction will be used for general corporate purposes.

The ratings consider the company's solid business position as one of the world's leading mining companies, Fitch said.

The company's strong business position is viewed to be sustainable due to its leading market positions in iron ore, strong global presence in nickel and low production cost structures for both iron ore and nickel relative to competitors within these industries, the agency said.

The ratings also reflect Vale's strong balance sheet, conservative capital structure and strong cash flow from operations, Fitch added.

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