S&P lowers Glencore

Standard & Poor's said it lowered Glencore plc’s long-term corporate credit rating to BBB- from BBB, along with its short-term corporate credit rating to A-3 from A-2.

The outlook is stable.

S&P also said it lowered the rating on the debt issued or guaranteed by Glencore and Glencore International AG to BBB- from BBB.

The downgrades reflect the material challenges faced by the mining industry and increased uncertainty about future operating performance in 2016 and 2017, the agency said.

The company’s 2015 financial profile also was below earlier expectations, S&P said.

The price assumption for most commodities, including some of the key commodities for Glencore, were recently lowered and are expected to remain very unsettled, the agency added.

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