International credit ratings agency Standard and Poor's has announced that nine iron ore and copper
mining companies around the world faced negative rating actions after the downward revision in S&P's price assumptions for the metals.
"The large downward revision in iron ore prices has triggered more negative actions in this sector than other metals. Generally though, we consider miners with large exposures to iron ore or copper would face lower earnings, cash flows, and weaker credit measures in the next two years. High cost producers or those with large committed capital expenditures could be hit harder. More negative rating actions could occur in these sectors if prices continue to fall and companies fail to promptly adjust to the changing environment," Standard & Poor's credit analyst May Zhong said.
In late January this year, the rating agency lowered its iron ore price forecast for 2015 and 2016 to $65/mt from $85/mt.