Moody’s revises Vale view to negative

Moody's Investors Service said it changed the outlook for Vale SA and related ratings to negative from stable.

At the same time, the agency affirmed Vale's Baa2 senior unsecured rating, provisional Baa2 senior unsecured rating under its well-known seasoned issuer shelf registration and the Baa2 ratings on the foreign currency debt issues of Vale Overseas (guaranteed by Vale) as well as Vale Overseas' provisional Baa2 senior unsecured shelf rating.

The Baa2 senior unsecured ratings of Vale Canada (not guaranteed by Vale) were also affirmed.

At the same time, Moody's América Latina affirmed Vale's Baa2 global scale local currency rating and Aaa.br national scale rating as well as the Baa2 global scale local currency rating and Aaa.br national scale rating on Vale's R$750 million senior unsecured notes.

Moody’s said the affirmation and change in outlook reflect its view that the company's credit profile and operations remain solid, but incorporate the deterioration in market fundamentals for iron ore and base metals, pressuring commodity prices in a period in which Vale is undergoing a large expansion phase with substantial capital expenditures.

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