BHP Billiton Limited’s
(ASX:BHP) credit ratings have been lowered from A+ to A by ratings agency Standard and Poor’s.
S&P said under various scenarios, it now forecasts that BHP could see its ratio of funds from operations to debt fall 30 to 40 percent over 2016 and 2017; well below the agency’s threshold for a A+ rating.
BHP has also been placed on CreditWatch with negative implications. Standard and Poor’s advised it aims to resolve CreditWatch after BHP releases its financial results, when the ratings agency will know more about the timing and magnitude of the company’s financial actions.
The miner maintains it has the strongest credit rating in the sector and remains committed to maintaining its strong balance sheet through the cycle.
BHP Billiton recorded a net profit of $3.74 billion at 30 June 2015.
