JOHANNESBURG (miningweekly.com) – Ratings agency Moody’s Investors Service on Friday upgraded the outlook of Australian iron-ore company Fortescue Metals’ corporate family rating to stable and affirmed the rating at Ba3.
According to a Fortescue statement, Moody’s said that the company’s recent efforts to reduce its debt had lowered its breakeven costs and created a substantial buffer to maintain leverage metrics at adequate level for the miner’s rating, even under the lower iron-ore price scenarios.
“We are pleased that Moody’s has recognised Fortescue’s operating performance, significant progress in reducing costs and the generation of strong operating cash flows. This has enabled the company to continue to reduce debt levels while maintaining solid liquidity,” commented Fortescue CFO Stephen Pearce.
Fortescue had repaid $2.9-billion of its debt in the 2016 financial year, lowering its interest expenses by $186-million.