DBRS cuts Anglo American to junk

DBRS said it downgraded the issuer rating of Anglo American plc to BB (high) from BBB (low) and maintained the negative trend.

The downgrade reflects the more significant-than-expected deterioration of Anglo’s key credit metrics for the full-year 2015 and a weaker business risk profile reflecting a shift in the company’s business risk as a result of its restructuring efforts and the overall industry dynamics.

Additionally, DBRS said it does not expect the company’s credit metrics to materially recover in 2016, as Anglo’s core products continue to face a depressed pricing environment that is not likely to recover in the near- to medium-term.

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