PT Vale Indonesia Tbk #BB# Corporate Credit and #BBB-# Issue-Level Ratings Outlook Remains Stable

Stocks and Financial Services Press Releases Thursday September 28, 2017 08:46
SAO PAULO--28 Sep--S&P Global Ratings

SAO PAULO (S&P Global Ratings) Sept. 27, 2017--S&P Global Ratings affirmed its 'BB' corporate credit rating on PT Vale Indonesia Tbk (PTVI). At the same time, we affirmed the 'BBB-' issue-level rating on the company's senior unsecured loan, which counts on a full and unconditional guarantee by PTVI's indirect parent company, Vale S.A. The outlook on the corporate rating is stable.

The rating affirmation reflects PTVI's strong financial metrics despite weaker nickel prices in 2016 followed by price volatility in recent quarters. The company has focused on improving operating efficiency to offset price swings. In addition, the company faces the requirement under its contract of work (CoW) to increase capacity in the next few years, which we believe it will execute with its internal cash flows, given the maintenance of low debt.

We expect PTVI to continue benefiting from the fact that it is part of Vale S.A. (Vale; BBB-/Positive/--), which includes a long-term purchase agreement for nickel. Vale also provides operational expertise, and its guarantee drives the rating on PTVI's debt.

Latest Press Release

mai welcomes real estate developer CMC on November 19

Market for Alternative Investment (mai) will list Chaoprayamahanakorn pcl, a leading real estate developer onNovember 19, under the ticker symbol "CMC". The company has a market capitalization at its initial public offering (IPO) of THB 3.00 billion...

KTC - Chilito Mexican Grill - Farm Factory provide members special privileges for payments made using QR Pay in the KTC Mobile app.

Mrs. Pranaya Nithananon, Vice President - Credit Card Business, "KTC" or Krungthai Card Public Company Limited, provides KTC VISA and KTC MasterCard credit card members who make payments through KTC QR Pay in the "KTC Mobile" app worth Bt. 300 or more...

Photo Release: KBank opens new flagship branch and THE WISDOM Lounge at ICONSIAM

Mr. Wirawat Panthawangkul (3rd from left), KBank Senior Executive Vice President, and Ms. Chadatip Chutrakul (4th from left), Director of ICONSIAM Co., Ltd., and Chief Executive Officer of Siam Piwat Co., Ltd., participated in the opening ceremony of...

Photo Release: CIMB Group Joins RippleNet to Power Instant Payments Across ASEAN

Tengku Dato' Sri Zafrul Aziz, Group CEO of CIMB Group (right), and Brad Garlinghouse, Ripple CEO (left) commemorating the strategic collaboration between CIMB Group and Ripple to power instant payments across ASEAN at the Singapore FinTech festival 2018...

CIMB Group Joins RippleNet to Power Instant Payments Across ASEAN

CIMB is one of the first banks to leverage blockchain technology to tap into region's USD120 billion remittance business CIMB Group ("CIMB" or "the Group") and Ripple have entered into a strategic collaboration to enable instant cross border payments...

Related Topics