S&P changes Vale outlook

S&P said it revised the outlook on the global scale ratings on Vale SA to stable from positive.

The agency also affirmed the BBB- global scale and brAAA national scale ratings on the company.

The outlook on the national scale ratings is stable.

At the same time, S&P revised the outlook on Vale Canada Ltd. to stable from positive and affirmed the ratings on the bonds issued by Vale, Vale Overseas Ltd., Vale Canada and PT Vale Indonesia Tbk at BBB-.

The agency also revised Vale's stand-alone credit profile to bbb from bbb-.

S&P said the revision follows the agency’s understanding that despite some incipient geographical diversification, Vale's core operations are overridingly exposed to Brazil. Therefore, S&P continues to cap the ratings at one notch above Brazil's transfer and convertibility assessment, which is bb+.

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