Moody’s revises Vale view to stable

Moody’s Investors Service said it revised its outlook for Vale SA to stable from negative.

“The change on the outlook to stable from negative is supported by the higher visibility on the costs and financial liabilities that Vale will incur as a result of the accident with the tailings dam at the Corrego do Feijao mine in Brumadinho, state of Minas Gerais. Accordingly, Vale has provisioned a total of $6 billion in 1H2019, which encompasses actions for socioeconomic and environmental recovery of the areas affected and will be disbursed mostly during 2019-2021,” Moody’s said in a news release.

Moody’s said it doesn’t see any significant affect on Vale’s liquidity or leverage.

The agency affirmed the Ba1 global scale and Aaa.br national scale ratings as well as the Ba1/Aaa.br ratings on Vale’s senior unsecured notes.

In addition, Moody’s affirmed Ba1 senior unsecured ratings and ratings on debt issues of Vale Overseas Ltd. and the Ba2 senior unsecured ratings of Vale Canada Ltd.

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