Moody’s gives Fortescue notes Ba1

Moody's Investors Service said it rated Ba1 Fortescue Metals Group Ltd.’s new $1.5 billion of 4 3/8% backed senior unsecured notes due 2031. Fortescue’s wholly owned subsidiary FMG Resources (August 2006) Pty Ltd. issued the notes, which the parent guarantees.

Concurrently, the agency affirmed Fortescue’s Ba1 corporate family rating. “The rating on the notes is in line with the current Ba1 rating on the other senior unsecured notes issued by FMG Resources. The new notes will rank pari passu with the existing notes and will rank behind the company's term loan and credit facility, which benefit from share-specific security,” Moody’s said in a press release.

The proceeds will be used to tender for the company's senior unsecured notes due in 2022 and 2023 with any remaining proceeds used for general corporate purposes.

The outlook remains stable.

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