Moody’s lowers Fortescue, debt

Moody's Investors Service said it downgraded Fortescue Metals Group Ltd.'s corporate family rating to Ba3 from Ba2.

At the same time, the agency downgraded the senior unsecured and senior secured ratings of FMG Resources (August 2006) Pty Ltd. to B2 and Ba2 from B1 and Ba1, respectively.

The outlook on all ratings is negative. This concludes the review for downgrade initiated on Jan. 22

Moody’s said the downgrade reflects its view that there has been a fundamental downward shift in the mining sector with the downturn being deeper and prospects for a recovery extended, resulting in increased credit risk and weaker metrics for Fortescue, as well as the global mining sector.

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