S&P affirms Fortescue’s credit rating at 'BB'

Thursday, 04 February 2016 12:20:02 (GMT+3)   |   Istanbul
       

International credit rating agency Standard & Poor's Ratings Services has announced that it has affirmed its 'BB' corporate credit rating on Australia-based mining company Fortescue Metals Group Ltd. The outlook remains negative.
 
S&P noted that the improvement in Fortescue's cost of production, reduced capital expenditure, and reduction in outstanding debt moderate the impact of lower price assumptions on Fortescue’s key credit measures. However, the negative outlook on Fortescue reflects the challenging market conditions facing iron ore players. Slower demand growth from China's struggling steel industry and continued increase in low-cost seaborne iron ore supply are sustaining tough conditions. As such, Fortescue's credit metrics could fall below S&P’s current expectations if external pressures intensify.

Similar articles

Moody's upgrades Fortescue's credit ratings

19 Jan | Steel News

Fitch upgrades Fortescue’s outlook to stable from negative

29 Aug | Steel News

Fitch affirms Fortescue’s credit rating at BB+ with a negative outlook

26 Feb | Steel News

Fitch revises Fortescue’s outlook to stable

03 Sep | Steel News

Fortescue to raise US$1.5 billion through syndicated loan

18 May | Steel News

Moody's upgrades Fortescue's credit ratings

19 Jan | Steel News

Fitch upgrades Fortescue’s outlook to stable from negative

29 Aug | Steel News

Fitch affirms Fortescue’s credit rating at BB+ with a negative outlook

26 Feb | Steel News

Fitch revises Fortescue’s outlook to stable

03 Sep | Steel News

Fortescue to raise US$1.5 billion through syndicated loan

18 May | Steel News