Vale Slumps to Five-Week Low as S&P Cuts Rating on Ore Price. Vale SA, the world's largest iron-ore producer, tumbled to a five-week low after Standard &...

Vale Slumps to Five-Week Low as S&P Cuts Rating on Ore Price. Vale SA, the world's largest iron-ore producer, tumbled to a five-week low after Standard & Poor's cut its rating for the first time since 2006 amid a slump in prices for the raw material. Shares of the Rio de Janeiro-based company dropped 4.6 percent to 17.48 reais at the close of trading in Sao Paulo, contributing most to the Ibovespa's 0.4 percent loss. The stock was the worst performer among the world's biggest mining companies today. The company's benchmark bonds due in 2022 slipped 0.37 cent to 96.32 cents on the dollar. S&P cut Vale's rating one step on Jan. 23 to BBB+, the third-lowest investment grade, citing weakness in the iron-ore market. Prices for the mineral, which is used in steelmaking, declined 47 percent last year as producers including Vale increased output even as demand in China weakened. The commodity fell 4.3 percent today to $63.54 a dry metric ton, pushing this year's drop to 11 percent. Click here for the full article: (VIEW LINK)


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