Moody’s lowers Anglo American, debt

Moody's Investors Service said it downgraded the senior unsecured ratings of Anglo American plc (AAL or the company) and its subsidiaries to provisional Ba3 from provisional Baa3 and converted the company's Baa3 long-term issuer rating into a Ba3 corporate family rating, in line with the rating agency's practice for corporates with non-investment-grade ratings.

Concurrently, the agency downgraded the rated senior unsecured guaranteed debt instruments at Anglo American Capital plc to Ba3 from Baa3, AAL's short-term ratings to provisional NP from provisional P-3 and the company's national scale ratings to Baa2.za/P-2.za from A3.za/P-1.za.

At the same time, Moody's assigned a Ba3-PD probability of default rating to AAL.

The outlook on all ratings is negative. This action concludes the review for downgrade process on Dec. 10.

Moody’s said the downgrade primarily reflects its assessment that the company now faces a higher business risk due to deterioration in commodities market conditions and a longer and more uncertain deleveraging period than previously expected.

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