Vale is the first brazilian company to regain investment grade of the three ratings agencies

Less than three years after the tragedy of Samarco, in Mariana (MG), and the pressure of falling prices of iron ore, the mining company Vale to have investment grade by three major credit rating agencies. The company is the first Brazilian company to obtain the three stamps – Standard agencies & Poor's, Fitch and Moody's – after the Brazil losing investment grade and the worsening of the crisis in the country. While the reconquista of the seal of good principle by Brazil is not yet on the radar, the Valley has regained the distinction of the "bite" of credit rating agencies on Monday, after Moody's have raised the company's rating. Among the advantages of obtaining the investment grade is fundraising to lower interest rates. The evaluation of the Valley changed little over a year after the arrival of Fabio Schvartsman, an Executive chosen to preside over the company and make it more predictable in the eyes of the financial market. Renewed confidence in the company is perceived in the company's shares. In the past 12 months the mining action registers high of almost 80%. This year, recovery comes close to 30%. On Tuesday, 24, ordinary papers Worth soared 3.45%, to R $51.31. Financial profile. Moody's, which had withdrawn the investment grade of the Valley in early 2016, justified, to return the evaluation, the company modified the production profile and managed to reduce debt. "The completion of the project S11D allowed a substantial increase in the production of low cost, while the increased focus on iron ore mixture of better quality and higher Awards have given support for profitability," the Agency said in a statement. Since the arrival of the Schvartsman Valley, the company broadened the goal of debt reduction path had been paved in previous management, Murilo Ferreira. At the end of the first quarter, the net debt of the Valley totaled $ $14.9 billion, a decrease of 35% since March 2017. The intention is to close the year with net debt of $ $10 billion. Debt reduction was aided. Now, the movement will follow through with cash generation, says the company. The Moody's decision took also into account the agreement signed last month between Vale, BHP Billiton (your partner at Samarco) and Brazilian authorities to lessen the damage caused by the breaking of the dam, which included not only environmental impacts, but also resulted in the deaths of 19 people. At the end of 2017, another move guaranteed to the company greater visibility in the market: the migration to the new Market shares, higher segment corporate governance practices of the B3. At the end of last year, the Executive Director of finance and investor relations of Vale, Luciano Siani, had said that the recovery of the investment grade was a goal of the company. With this stamp, the trend is for lower costs for fundraising. BTG Pactual, in a report distributed on Tuesday, 24, to the market, your recommendation for reiterated the action of Worth, despite the recent good performance of the role. The Investment Bank highlights the quality award of the company's iron ore, as well as a good time to your gains, as well as greater predictability. "With an impressive capital allocation and with a light Kit for the coming years, we believe the story was materially risky action," says the BTG. Swing. Vale Announces on Wednesday, 25, your result for the second quarter. With a push of your quality iron ore, Vale should present a robust financial performance for the period. The cash generation as measured by Ebitda (earnings before interest, taxes, depreciation and amortization) is expected to grow 43% in adjusted annual for $ $3.9 billion, according to the average of the projections of five financial institutions consulted by Prior Broadcast (BB-BI, BTG Pactual, Itaú BBA, Morgan Stanley and Harvest).