Moody's upgrades Fortescue's credit ratings

Thursday, 19 January 2017 17:09:43 (GMT+3)   -   Istanbul
SteelOrbis News

International credit rating agency Moody’s has announced that it has upgraded Australian iron ore miner Fortescue Metals Group’s corporate credit ratings to Ba1 from Ba2 with a stable outlook. 
Moody’s stated that the upgrade to Fortescue's ratings reflects the substantial debt reduction the company has undertaken over the last several years and most recently in December 2016, continued and sustained cost improvements which have created an earnings buffer to lower iron ore prices and limited near-term capital expenditures, supporting free cash flow generation. The upgrade also reflects Moody's expectation that Fortescue's ongoing cost and debt reduction will allow it to maintain conservative financial metrics for the rating, even in a weaker iron ore price environment.

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