S&P affirms Vale, loan

S&P said it affirmed its BB corporate credit rating on PT Vale Indonesia Tbk. (PTVI) and affirmed the BBB- issue-level rating on the company's senior unsecured loan, which counts on a full and unconditional guarantee by Vale SA.

The outlook is stable.

The agency said the affirmation reflects PTVI's strong financial metrics despite weaker nickel prices in 2016 followed by price volatility in recent quarters.

“The company has focused on improving operating efficiency to offset price swings. In addition, the company faces the requirement under its contract of work to increase capacity in the next few years, which we believe it will execute with its internal cash flows, given the maintenance of low debt,” S&P said in a news release.

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