Fitch lowers BHP Billiton, Rio Tinto to negative

Fitch Ratings said it revised the outlook on BHP Billiton Plc and BHP Billiton Ltd. to negative from stable and affirmed the issuer default ratings at A+.

Fitch also said it revised the outlook on Rio Tinto Plc and Rio Tinto Ltd. to negative from stable and affirmed the issuer default ratings at A-.

The agency also said it affirmed Anglo American plc’s issuer default rating at BBB- with a negative outlook.

The outlook revisions follow an industry review, which included an analysis of forecast operational and financial profiles for each company over the next three to four years, Fitch said.

The company’s operational profile, which has superior product diversification compared to the broad industry with exposure to the high margin oil business, places it at the higher end of the A rating category, the agency said.

The company will benefit from a streamlined business structure and better average position on the commodity cost curve, which will help the company navigate the depressed commodity prices environment, Fitch said.

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