DBRS Morningstar Assigns Rating of BBB (low) With a Stable Trend to Vale Overseas Limited’s Senior Notes

DBRS Limited (DBRS Morningstar) assigned a rating of BBB (low) with a Stable trend to Vale Overseas Limited’s (Vale) $1.5 billion 6.125% Senior Notes due June 12, 2033 (the Notes). The newly issued debt instrument is guaranteed by Vale S.A. (rated BBB (low) with a Stable trend by DBRS Morningstar), Vale’s parent company. The rating being assigned is based upon the rating of an already-outstanding series of the above-mentioned debt instruments.

DBRS Morningstar expects Vale to use the net proceeds from the issuance of the Notes to fund the recently announced cash tender offer of certain notes previously issued by Vale S.A. and Vale and for general corporate purposes.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/396929/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings (May 17, 2022).

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

DBRS Morningstar applied the following principal methodologies:
-- Global Methodology for Rating Companies in the Mining Industry (August 30, 2022) https://www.dbrsmorningstar.com/research/402159
-- DBRS Morningstar Global Criteria: Guarantees and Other Forms of Support (March 28, 2023) https://www.dbrsmorningstar.com/research/411694

The credit rating methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies.

A description of how DBRS Morningstar analyzes corporate finance transactions and how the methodologies are collectively applied can be found at: https://www.dbrsmorningstar.com/research/397223/interplay-of-global-corporate-finance-rating-methodologies-when-analyzing-corporate-finance-transactions.

The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.

Information regarding DBRS Morningstar ratings, including definitions, policies, and methodologies, is available on www.dbrsmorningstar.com or contact us at [email protected].

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