Fitch affirms Samarco

Fitch Ratings said it affirmed the BBB foreign- and local-currency issuer default ratings of Samarco Mineracao SA as well as its national rating of AA+(bra).

The outlook is stable.

The ratings consider Samarco's joint ownership profile by two industry leaders Vale SA and BHP Billiton plc with each company owning 50% of Samarco, the agency said.

The ratings also consider tangible shareholder support during weak operating conditions, the company's position as a low cost producer of iron ore pellets, high capex and negative free cash flow, the agency said.

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