S&P puts Vale on negative watch

S&P said it placed the ratings on Vale SA, including the BBB- foreign-currency and brAAA national-scale credit ratings, on CreditWatch with negative implications.

The agency also said it placed the ratings on Vale's subsidiaries on CreditWatch negative.

The CreditWatch placement reflects the contingent risks Vale will face following the dam failure in Brumadinho, which resulted in several deaths and devastated territories in the region.

Vale's environmental and social liabilities could be substantial, especially considering that such an incident has happened before, S&P said.

Vale now faces multiple risks arising from the disaster, the agency added.

The agency said it will resolve this CreditWatch placement as soon as possible when all

relevant information becomes available.

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