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Reuters reported that Brazilian mining company Vale SA (NYSE:VALE) was downgraded late on Thursday by the Standard & Poor’s credit-rating agency over concern that a drop in iron ore prices will have a negative impact on the revenue of the company.
Reuters reported that Brazilian mining company Vale SA (NYSE:VALE) was downgraded late on Thursday by the Standard & Poor’s credit-rating agency over concern that a drop in iron ore prices will have a negative impact on the revenue of the company.
As quoted in the market news,
New York-based S&P reduced the company’s rating to “BBB,” the second-lowest investment grade level, from “BBB+.” S&P had cut the company’s rating to BBB+ in January.
Vale Chief Financial Officer Luciano Siani stated:
We are disappointed by the short-term vision of S&P. We hope that the ratings agencies will have a view beyond the cycle that is in line with our average debt tenor of nine years. The sharp reduction in risk spreads of our bonds shows that we are not alone in this view.