DBRS trims Anglo American

DBRS Ltd. said it downgraded the issuer rating of Anglo American plc to BBB from BBB (high) and has changed the trend to stable from negative.

DBRS said the downgrade reflects a deterioration of Anglo’s credit metrics and current challenging market conditions in most of its major commodities (iron ore, coal and copper). Cash flow was negatively affected by the low price environment in 2014, which is expected to continue in H1 2015.

In the meantime, substantial cash flow deficits caused an increase in debt levels. As a result, all Anglo’s 2014 credit metrics weakened and were either in the BBB range or weaker and are not expected to improve over the near term as challenging market conditions persist well into H1 2015, the agency said.

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