Fitch ups Anglo American to BBB-

Fitch Ratings said it upgraded Anglo American plc’s long-term issuer default rating to BBB- from BB+.

The outlook is stable.

Fitch said the upgrade reflects the improvement in Anglo American's financial profile on the back of stronger-than-expected results and cash-flow generation since mid-2016, and steps taken by the company to strengthen its balance sheet.

The group used free cash flow from the recovery in commodity prices, and to a lesser extent proceeds from non-core asset disposals, to reduce leverage, the agency explained.

Gross debt fell to $13.6 billion at June 30 from $19.8 billion at end-2015.

The financial profile is now in line with an investment-grade rating and Fitch said its base case assumes that FFO adjusted leverage will remain around the 2.5 times guideline for a BBB rating category over the next four years.

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