Fortescue Metals Group Limited’s
(ASX:FMG) credit rating has been downgraded by Moody’s Investors Service from Ba2 to Ba3, moving to a negative outlook.
Moody’s downgraded FMG Resources Pty Limited senior secured rating from Ba1 to Ba2 and the senior unsecured rating from B1 to B2.
Moody’s cited a protracted challenging environment based on a downward shift in the mining sector, including the slowing growth of China. Moody’s also noted that Fortescue’s lower breakeven levels combined with the company’s sizable cash balances should allow Fortescue to continue to reduce debt levels and maintain a solid liquidity profile.
Fortescue Chief Financial Officer Stephen Pearce said the miner continues to focus on successfully reducing operating and capital costs to offset the impact of lower iron ore prices.
Fortescue Metals recorded a net profit of $436.62 million at 31 December 2015.
