Moody's: Xstrata view to stable

Moody's Investors Service said it revised to stable from negative the outlook on the Baa2 senior unsecured ratings of Xstrata plc and its guaranteed subsidiaries.

The outlook change reflects an expectation that the improvement in operating environment witnessed within the commodity sector in the past few months are expected to result in Xstrata's credit metrics becoming repositioned in line with a Baa2 rating, Moody's said.

While Xstrata's financial performance was significantly impacted by the adverse trading conditions affecting the commodity markets in the first half of 2009, the recovery in commodity prices has helped contain the decline, the agency said.

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