S&P gives Samarco notes BBB-

Standard & Poor's said it assigned its BBB- rating to Samarco Mineracao SA's proposed $500 million senior unsecured notes due 2024.

Proceeds will be used for general corporate purposes.

The notes rating reflects the BBB- corporate credit rating, which in turn is based on the company's bb+ standalone credit profile and one-notch support from its parent company, Vale SA (A-/negative/--).

S&P said it views Samarco as a "strategically important" subsidiary of Vale. However, it doesn't incorporate parent support as a basis for rating Samarco above the sovereign foreign currency rating on Brazil (BBB-/stable/A-3); the rating on the company is limited at that level.

The company’s standalone credit profile continues to reflect its "fair" business risk profile and "intermediate" financial risk profile, the agency said.

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