Brazilian iron ore producer Compania de Vale do Rio Doce (CVRD) has scaled one step closer to the A-list. Shortly after Standard & Poor's assigned BBB' for both the local and foreign currency ratings on the corporate last week, the agency upgraded CVRD's unwrapped securitizations to BBB+' from BBB'. The move benefits a $25 million 8.682% bond due 2007 and a $150 million 8.926% bond due 2010, both issued in October 2000 via arranger Banc of America Securities. The amount outstanding of these bonds is $12.6 million and $120.7 million, respectively.

S&P's upgrade follows a parallel move by Moody's Investors Service, which boosted the 2007 and 2010 to Baa1' from Baa2' on Sept. 26. Moody's decision came after CVRD's corporate ratings were upgraded in July 2005, when the agency implemented a new rating methodology for government-related issuers (see ASR 7/18/05).

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