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SÃO PAULO – Rating agency Fitch downgraded Vale (VALE3) rating from BBB + to BBB- Monday afternoon (28), putting the company's rating under observation negative, indicating a new cut possible.
In a statement, the agency says the decision reflects the expectation that the company will incur high repair costs after the tragedy. Fitch also believes that the fines should be "substantial", mainly because it's the second case in about three years, recalling the tragedy of Mariana.
Fitch also pointed out that there should be a reduction in Vale's production in the short term.
According to the rating agency, access to Vale's financing should also be hindered because of ESG's environmental concerns. social, governance and governance issues, as well as issues related to the stability of its operations.
Saturday, Standard & Poor's had already put Vale's rating on a negative notice, warning that it could also reduce it. , currently at BBB-, in several stages depending on the fines and the possible loss of operating license in the affected area.
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