Moody’s ups Anglo American to investment-grade

Moody's Investors Service said it assigned a Baa3 long-term issuer rating to Anglo American plc and withdrew the Ba1 corporate family rating and Ba1-PD probability of default rating.

Concurrently, the agency upgraded the group's senior unsecured instrument rating to Baa3 from Ba1, short-term rating to P-3 from NP, the senior unsecured rating on the company's medium-term note program to provisional Baa3 from provisional Ba1 and short-term rating to provisional P-3 from provisional NP.

Moody's also upgraded Anglo American SA Finance Ltd.’s national scale ratings to Aa1.za from Aa2.za.

The outlook on all ratings was changed to stable from positive.

"Upgrading Anglo American's ratings to Baa3 reflect our expectation that the miner will continue using its improving operating cash flow and cash balances to reduce debt over the next 2-3 years, and manage new growth investments in a way that maintains its strengthened financial profile and positive free cash flow generation," Elena Nadtotchi, Moody’s vice president, senior credit officer and lead analyst for Anglo American, said in a news release.

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