S&P Gives Vale BBB+

S&P has raised the credit rating of Brazilian miner Vale to BBB+ from BBB, on stronger liquidity following its $11.56bn equity follow-on. The offering “adds to the company’s liquidity and improves its ability to handle its aggressive capital expenditure program,” the agency adds. S&P expects strong iron ore prices and profitability in other metals to enhance Vale’s cashflow in the next 2 years. It expects credit metrics to remain stable, despite possible merger transactions and aggressive capex targets for 2008 and 2009. Vale had been on review for an upgrade since June 16. Its Vale Inco unit was also raised to BBB+ from BBB.