Fitch affirms Samarco Mineracao

Fitch Ratings said it affirmed Samarco Mineracao SA's BBB foreign- and local-currency issuer default ratings and AA+(bra) national rating.

The outlook is stable.

The agency said Samarco's investment-grade ratings are supported by its 50/50 joint ownership by two industry leaders, Vale SA and BHP Billiton plc. Fitch believes Samarco's two strong shareholders, with combined operating EBITDA in 2009 of more than $30 billion, would lower Samarco's dividends to preserve its capital structure if needed, as demonstrated during 2009.

Samarco's credit profile also benefits from its position as a low-cost producer of iron ore pellets and its solid capital structure, which enabled it to withstand the depressed demand for pellets during the last quarter of 2008 and first half of 2009, the agency said.

For the last 12 months ended in June, Samarco had a total debt-to-EBITDA ratio of 1.2 times and a net debt-to-EBITDA ratio of 1.0 times.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.