Moody’s upgrades Vale, notes

Moody's Investors Service said it upgraded to Baa3 from Ba1 the senior unsecured notes issued by Vale SA.

The national scale Aaa.br ratings are unchanged.

At the same time, Moody's assigned to Vale a Baa3 global scale and Aaa.br national scale issuer rating and withdrew Vale's Ba1 global scale and Aaa.br national scale corporate family rating.

The outlook is stable.

“The upgrade of Vale's ratings reflects the continued improvement in its credit metrics supported by enhanced production profile and reduction in absolute debt levels,” the agency said in a news release.

“The conclusion of S11D allowed for a substantial raise in low cost production, while the increased focus on blending of better quality iron ore and higher premiums supported the company’s profitability.”

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