Rio Tinto sliding back to GFC low

Rio Tinto is edging dangerously close to its lowest share price on the ASX since the GFC.

Over the past month Rio has lost 18.5 per cent of it’s value, dropping from $45.44 per share to $37.03.

Rio Tinto’s lowest price in the past 10 years was $32.00 in December 2008.

The British miner is now on the watch list for a potential credit downgrade, which Standard and Poor’s has already applied to BHP, dropping it from A+ to A to reflect the significant changes in commodity price.

“Under various scenarios, we now forecast BHP could see its ratio of funds from operations to debt fall to 30-40 per cent over 2016 and 2017, well below our threshold for an ‘A+’ rating,” the agency said.

BHP is also on "credit watch with negative implications", with S&P indicating the rating could be taken even lower after the miner releases earnings on February 23.

BHP is now trading at $14.27 on the ASX: aside from the low of $14.23 on January 21, the last time BHP traded this low was in late 2004, as the boom was starting to ramp up.

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