S&P cuts ratings on Xstrata, warns of cost pressures in ‘09
Dec 15, 2008 | 12:50 PM
| Mick Bowen
Standard & Poor's (S&P) has cut ratings for Xstrata Plc and said it expects the sorry state of the global economy and the continued weakness of commodity prices to cut profits and cash flow next year.
S&P also lowered its long-term and short-term corporate credit ratings on the Swiss miner to BBB/A-3 from BBB+/A-2 and gave the rating a negative outlook.
"This is due to a sharp market downturn that we expect to lead to markedly lower cash flows, and—with adjusted debt of $17 billion arising from previous acquisitions—weaker leverage. The outlook is negative," S&P credit analyst Alex Herbert said in a report.....
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