International credit rating agency Moody’s has announced that it has upgraded Australian iron ore miner Atlas Iron Limited's corporate credit rating to B3 from Caa3 with a stable outlook.
Moody’s stated that the upgrade to Atlas Iron’s rating reflects the significant improvements in the company's credit metrics following its A$54 million of debt reduction in January this year. This, combined with earlier debt repayments and an improved earnings generating ability, has led to a step change in the company's debt level and financial profile.
Meanwhile, the stable outlook reflects Moody's expectation that Atlas will be able to generate sufficient cash flow to support its operations and further reduce debt over the next 12-18 months.