S&P eyes BHP for downgrade

S&P said it placed its A ratings for BHP Group Ltd. and its senior unsecured notes on CreditWatch with negative implications.

The placement follows BHP's announcement last week of an agreement to pursue an all-scrip merger of its petroleum business with lower-rated Woodside Petroleum Ltd., the agency said. The companies plan to complete the transaction in the second quarter of 2022. BHP expects to distribute its 48% share in the merged company to its shareholders.

The transaction may result in a less diversified portfolio, with increased reliance on iron ore, S&P said.

“The CreditWatch placement indicates that we could lower our ratings on BHP by up to two notches in the coming months, based on our updated review of the strength of the group's business risk profile, if the divestment of its petroleum assets takes place as proposed,” S&P said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.