Dam of mud Samarco reaches the sea in the Holy Spirit (Ricardo Moraes / Reuters)
The risk rating agency Standard & Poor's (S & P) downgraded on Tuesday the note Samarco mining company controlled by Brazil's Vale and Anglo-Australian BHP, after the environmental disaster in the city of Mariana, Minas Gerais. In a statement, S & P said it downgraded the rating on a global scale, from "BB +" to "BB-" on the grounds that the stoppage of production after the accident and imposed fines against mining will affect the financially.
"The downgrade action reflects the increased risks of the company's liquidity because the deadline to resume production is uncertain," the agency said. S & P also put the note Samarco under negative outlook, which leaves room for new downgrade in the short term.
The agency pointed out that the cash flow of the company is "very limited" after the stoppage of operations as a result of the accident, which occurred on the last day November 5 and which killed at least twelve people. At least ten others are still missing.
Samarco was fined for now, more than 350 million and signed a 1 billion reais to finance the recovery of damaged areas and compensate affected families, many of whom lost their homes.
Rupture of Samarco's levees caused a leak of water, mud and mining waste that erased the map Bento Rodrigues district in the city of Mariana. The disaster also flooded the other six districts and a huge expanse of land and totally contaminated the river Doce, one of the largest in the Southeast Region of the country.
The leak came Sunday to the Atlantic Ocean and the sea was dyed a large brown stain, causing the death of thousands of fish despite the containment barriers that were placed.
