The global iron-ore giants are coming under pressure that could see them move slightly off their esteemed credit rating pedestals. Credit rating agency Standard & Poor’s warned earlier this month that it might lower the A+ credit rating that the august BHP Billiton has cherished for so long. The agency has already lowered the credit rating of Brazil’s Vale to BBB and Rio Tinto’s long-term rating is already at A- and its short-term rating at A-2. The negative outlook for iron-ore reflects the increased likelihood that BHP’s financial metrics will likely worsen in 2016 and the company’s A+ commitment to a progressive dividend policy could well be seen as a millstone as it reduces financial flexibility in times of deteriorating market conditions. BHP’s current long-term corporate A+ credit rating and its short-term A-1 rating are already the highest in the world’s top mining fraternity. To keep it, the company will have to slash costs and capital spending still further to shore up cash flow for an even bigger dividend declaration, which seems inappropriate in the current tough circumstances.