...Landmark Agreement Within Reach: Recent discussions taking place between Samarco Mineracao S.A. (Samarco, Foreign Currency [FC] Issuer Default Rating [IDR] BB¡/Rating Watch Evolving), Vale S.A. (Vale, FC IDR BBB/Rating Watch Negative), BHP Billiton Ltd/Plc (BHPB, long-term IDR A+/Negative), the government of Brazil, various prosecutors and related parties have provided more clarity as to the likely outcome for the future of Samarco following its tailing dam collapse in early November 2015. The attorney general of Brazil announced that discussions are currently ongoing and the outcome is expected to be communicated during February 2016. Failure to reach an agreement would complicate Samarco's ability to resume operations in a timely manner, making a default likely. Bonds Trading Higher: Investors remain concerned with the possibility of large punitive damages imposed on Samarco; the uncertainty surrounding its ability to restart operations; and the liquidity required to meet its various...
