Vale Credit Rating Raised to A- by S&P on Management Changes

Vale SA had its credit rating raised one level to A- by Standard & Poor’s, which said management changes signal that the world’s largest iron-ore producer will pursue a “more conservative” expansion plan.

The outlook for the rating, the fourth-lowest investment grade, is stable, S&P said today in a statement.

“While we still anticipate that Vale will maintain an aggressive investment budget over the next five years, we believe that the company is adopting a more prudent -- and therefore less risky -- expansion plan,” Sao Paulo-based analyst Milena Zaniboni said in the statement. “The changes in Vale’s executive board align well with its plan to be more conservative.”

Vale Chief Executive Officer Murilo Ferreira will propose appointing Tito Martins as chief financial officer in a management reshuffle that replaces three executive directors, according to a Nov. 21 e-mail from the company.

The yield on Vale’s bonds due in September 2020 rose two basis points, or 0.02 percentage point, to 4.48 percent. The extra yield investors demand to hold Brazilian government debt over U.S. Treasuries climbed eight basis points to 249.

To contact the reporter on this story: Alexander Cuadros in Sao Paulo at

To contact the editor responsible for this story: Jessica Brice at

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