S&P lifts Anglo American

S&P said it raised the long-term corporate credit and issue ratings on Anglo American plc to BB+ from BB, along with its South Africa national scale rating to zaA/zaA-1 from zaBBB+/zaA-2.

The outlook is stable.

The actions follow the recent rally in the prices of bulk commodities, including iron ore and coking coal, which support better-than-expected cash flow for Anglo American in 2016, S&P said.

Earlier this year, Anglo American announced its intention to restructure its portfolio, moving away from less-profitable assets and focusing on commodities that have strong medium- and long-term fundamentals, such as copper, diamonds and platinum, the agency said.

But following the recent recovery in commodity prices and the progress on divestments, the company decided to extend the timelines and pursue more value for its non-core assets, S&P said.

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