Moody's upgrades Anglo American

Moody's Investors Service said it upgraded Anglo American plc's long-term issuer rating to Baa2 from Baa3, along with its senior unsecured instrument rating to Baa2 from Baa3.

Anglo American's short-term ratings were upgraded to P-2 from P-3.

Moody's also said it upgraded the company's senior unsecured rating to provisional Baa2 from provisional Baa3, along with its short-term provisional rating of P-2 from P-3.

The agency also upgraded Anglo American SA Finance Ltd.'s national scale ratings to Aaa.za from Aa1.za.

Moody's also changed the outlook on both companies to stable from positive.

The upgrades reflect the sustained improved financial profile and continued conservative management of the balance sheet structure and leverage profile of the company, the agency said.

While Moody's said it does not expect Anglo's financial profile to further strengthen beyond the level achieved in 2018 due to rising investments for the development of the new Quellaveco copper mine, improved production cost and reduced debt levels have increased the company's resilience to volatile commodity prices.

The upgrades reflect material debt reduction in recent years and gradually improving production cost positions, the agency said.

Anglo American's credit profile has further strengthened driven by the improving production cost profile and significantly reduced debt levels, Moody's said.

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