S&P downgrades Vale to BBB-

Standard & Poor's said it lowered its global scale ratings on Vale SA to BBB- from BBB, including its corporate credit ratings and the ratings on bonds issued through Vale Canada Ltd., Vale Overseas Ltd., and PT Vale Indonesia Tbk.

The outlook remains negative.

At the same time, the agency revised the outlook on its brAAA Brazilian national scale corporate credit rating on the company to negative from stable. It also affirmed national scale ratings.

S&P said the downgrade reflects the weakening conditions in the iron ore markets, which it expects to remain through 2018. The agency also incorporated this scenario in its recent revision of iron ore prices.

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