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The Rating Agency Fitch downgraded the foreign currency credit rating of Vale from BBB + to BBB- and put the risk note of "BBB-" on notice. a new reduction.
In a statement released on Monday, Fitch pointed out that the deterioration of the retention capacity reflected the hope that the company would face "high repair costs as a result of the accident in Brumadinho . "
According to the agency, the reduction in Vale's credit rating also comes as a result of predictions that the fines imposed on the company would be "substantial", the mining accident s & # 39; 39, being produced about three years after the breakage of another dam.
In addition, Fitch argues that its rating actions are an anticipation of a short-term production decline and an additional investment to remedy the tragedy, as well as Other expenses to ensure the safety of several other dams of Vale.
"Access to the financing of the company may also be hindered by environmental, social and security concerns" , according to the agency.
According to Fitch's calculations, in a scenario in which Vale would lose all production from the Paraopeba complex, the company's EBITDA (earnings before interest, taxes, depreciation and amortization) would rise from About $ 15 billion in 2019 to $ 13.6 billion, while the price of iron ore was $ 60 per tonne.
"On a pro forma basis, this would increase the projected net debt ( debt) of the 0.7 x to 0.8x ", estimates the agency, which believes in an increase in these rates due to repairs, fines and other obligations to be imposed on Vale.
In the statement, the agency also points out that Vale has used about 40% of its production by dry process, while the remaining 60% have required containment dykes, including 136 in Brazil.
"If the production of these dams is interrupted on one of the other sites because of concerns expressed by regulatory agencies and / or federal authorities about these different dams, the Vale's ratings could be further degraded, "he said. to Fitch. [Fonction] {f (f, f, f, f, f, f) n.callMethod.apply (n, arguments): n.queue.push (arguments)}; if (! f._fbq) f._fbq = n; n.queue = n.loaded = 0; n.version = 2.0 & # 39 ;; n.queue = []; t = b.createElement (e); t.async =! 0; t.src = v; s = b.getElementsByTagName (e) [0]; s.parentNode.insertBefore (t, s)} (window, document, script, // connect.facebook.net/en_US/fbevents. fbq (& # 39; init & # 39; ;, & # 39; 1659995760901982 & # 39;); fbq (& quot; Track & # 39; PageView & # 39;);
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