Fitch rates FMG Resources loan BBB-

Fitch Ratings said it assigned an expected rating of BBB- to FMG Resources (August 2006) Pty Ltd.’s proposed $2.5 billion guaranteed secured facility due in 2022.

The facility is guaranteed by Fortescue Metals Group Ltd. and its subsidiaries, which currently represent 97% of the group’s consolidated assets and 98% of its net income.

The rating on the secured credit facility is notched up a level from Fortescue’s BB+ long-term issuer default rating to reflect additional provision of quality collateral, including mining tenements, Fitch said.

If the proposed facility is issued, Fortescue’s overall secured debt will increase to $7.4 billion or 84% of the company’s debt, the agency said.

However Fitch said it does not believe this level of secured debt will impair Fortescue’s senior unsecured creditors.

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