Fitch cuts Impala Platinum to BBB

Fitch Ratings said it downgraded Impala Platinum Holdings Ltd.'s long-term foreign-currency issuer default rating to BBB from BBB+ and downgraded its national long-term rating to A+(zaf) from AA(zaf).

The outlook is negative.

The downgrade reflects the fact that its ZAR 21 billion capital investment program is likely to see the company generate negative free cash flow over the next five years, Fitch said.

Fitch said it expects the company's financial flexibility to be reduced and leverage to rise, albeit from historically strong levels.

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