Moody’s revises Vale view to stable

Moody's Investors Service said it affirmed Vale SA's Ba3 ratings and related ratings, including Vale's senior unsecured rating and the ratings on the foreign currency debt issues of Vale Overseas Ltd. (fully and unconditionally guaranteed by Vale).

The outlook was changed to stable from negative.

The agency also affirmed the B2 rating for the senior unsecured ratings of Vale Canada Ltd. and changed the outlook to stable from negative.

Moody’s said the stable outlook reflects the improvement in Vale's credit metrics throughout 2016, supported by the initiatives taken by the company to improve its liquidity and expand production volumes at lower costs, and Vale's financial discipline regarding capex and dividend payments, which enhance its operating resilience.

Vale's adjusted EBITDA margins increased to 31.5% in the LTM ended September 2016, from 21% in 2015, while adjusted leverage (measured by total debt/EBITDA) declined to 4 times from 5.5 times in the same period.

© 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.