S&P upgrades Anglo American

S&P said it raised the ratings on Anglo American plc to BBB/A-2 from BBB-/A-3 and affirmed its South Africa national scale ratings at zaAAA/zaA-1+.

The agency also raised the ratings on Anglo American's revolving credit facility and unsecured notes to BBB from BBB-.

Anglo American's 2018 results were above expectations and its performance is expected to remain strong in 2019.

The stable outlook reflects the limited upside/downside prospects for the rating over the coming 12 months, S&P said.

Healthy prices across its portfolio boosted Anglo American's financial performance. Coal and platinum-group metals had a particularly strong year, the agency said.

Results could have been even higher, adjusted for the $0.3 billion loss stemming from the nine-month suspension of operations at Minas-Rio, an iron ore mine in Brazil, Moody's said.

The mine is now back in operation, the agency said.

If the price environment remain supportive and leverage low, Moody's said it forecasts that adjusted funds from operations-to-debt would remain at higher than 100%, thus higher than the 60% threshold required for the BBB rating.

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