Vale’s deal with prosecutors to end two multi-billion-dollar lawsuits does not change the miner’s ratings, credit rating agency Fitch said on Tuesday.
As previously reported by SteelOrbis and then confirmed by Vale late Monday, the miner, along with partner BHP Billiton and Samarco, ended two lawsuits totaling BRL 155 billion and BRL 20 billion, respectively, filed by public prosecutors, the state of Minas Gerais and the Brazilian government.
According to Vale, the BRL 20 billion case was dismissed, while the BRL 155 billion lawsuit was provisionally suspended for two years, as the three parties meet their commitments toward recovering in certain areas, among other goals.
The deal to settle the BRL 155 billion case still needs to be signed by the Brazilian federal government before being transferred to a federal court in Minas Gerais state.
Fitch said Vale’s cash flow to Samarco will be “manageable.” Vale’s net debt may reach $10 billion by 2018.