DBRS Finalizes Provisional Rating of BBB (low) with a Negative Trend on Vale Overseas New Notes

DBRS Limited (DBRS) has today finalized its provisional rating of BBB (low) with a Negative trend on the $1.0 billion 6.25% Senior Unsecured Notes due August 10, 2026 (the Guaranteed Notes) to be issued by Vale Overseas Limited (Vale Overseas) and unconditionally guaranteed by Vale S.A. (Vale or the Company).

The offering of the Guaranteed Notes closed on or about August 10, 2016. Vale intends to use the net proceeds from the offering to pay part of the redemption price of the 6.250% notes due 2017, issued by Vale Overseas and guaranteed by Vale, which mature in January 2017, and to pay the balance of such redemption price using available cash. Vale plans to issue a notice of redemption promptly after the closing of the offering of the Guaranteed Notes and to redeem, 30 days thereafter, the entire $1.25 billion outstanding amount of the 6.250% notes due January 2017.

DBRS has also finalized the BBB (low) rating with a Negative trend, assigned to the $1.25 billion 5.875% senior unsecured notes issued on June 10, 2016, and due June 10, 2021, by Vale Overseas and unconditionally guaranteed by Vale.

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

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The applicable methodology is Rating Companies in the Mining Industry, which can be found on our website under Methodologies.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.