Vale Put on CreditWatch by S&P Following Brazil Dam Failure
(Bloomberg) -- S&P Global Ratings placed Vale SA on CreditWatch with negative implications, saying the company could face fines and the possible loss of its license to operate in the affected region after a dam failure in Brazil.
- Ratings on Brazil-based Vale, including the ‘BBB-’ foreign-currency and ‘brAAA’ national-scale credit ratings, are placed on CreditWatch with negative implications
- Vale’s subsidiaries are also on CreditWatch with negative implications
- S&P could downgrade Vale up to several notches depending on the impacts of the accident
- Vale’s environmental and social liabilities could be substantial, especially considering that such an incident has happened before, said S&P
- Financial obligations for remediation and compensation might be substantial, said S&P
- S&P plans to resolve the CreditWatch placement when all relevant information becomes available
©2019 Bloomberg L.P.