DBRS Releases Report on Vale S.A.

DBRS has today released a report on Vale S.A. (Vale or the Company) that provides further detail on the recent confirmation of the Company and its subsidiaries at BBB (high). The trend on the ratings is
Stable.

Vale is one of the largest mining companies in the world, with a solid business base as the world’s largest iron ore producer, as well as rising outputs of nickel, copper, fertilizers, coal and other materials.

The Company, with its sound financial profile and good liquidity, generated record operating cash flow after working capital of $24.5 billion in 2011 on the strength of record-high iron ore and pellet sales and realized prices for these key commodities.

Vale’s strong credit metrics are based on robust operating cash flows, which are currently reliant on its highly profitable ferrous metal (iron ore) operations combined with moderate debt levels. The Company’s current credit metrics are strong for its rating and are considered to reflect “top-of-the-cycle” conditions in the iron ore business.

To obtain a copy of the report or the April 27, 2012, press release, please see the links below or contact us at info@dbrs.com.

Notes:
All figures are in U.S. dollars unless otherwise noted.