FMG’s ratings upgraded

Following its positive end of year results Moody’s has upgraded FMG’s credit rating.

The move comes less than a month after the ratings agency upgraded the miner’s corporate family rating (CFR) and its senior secured and unsecured ratings.

At the time Moody’s declared the company ‘stable’.

It has again upgraded its CFR from Ba3 to Ba2, and upgrading its senior secured credit rating to Ba1 and unsecured ratings to B1.

According to Moody’s, the most recent upgrade “reflects the considerable progress that the company has made in reducing its debt levels”, adding, “the company’s ongoing cost and debt reduction initiatives will allow it to maintain conservative financial metrics over the next 12-14 months.”

To date the miner has paid down more than a billion in debt, and recorded US$985 million in profit, a 212 per cent increase year on year.

FMG CFO Stephen Pearce welcomed the re-rating.

“Through excellence operational performance Fortescue has continued to generate significant free cash flows, reducing debt, and strengthening our balance sheet,” he said.

“It is pleasing that Moody’s have formally acknowledged Fortescue’s cost performance and the continued execution of our debt reduction strategies which improved Fortescue’s credit metrics.”

 

 

 

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