DBRS changes BHP Billiton view

DBRS said it confirmed the issuer rating of BHP Billiton Ltd. and BHP Billiton plc at A (low) and changed the trend to positive from stable.

BHP’s key credit metrics recovered strongly, driven by the rebound in the prices of its principal commodities, and are now robust for its rating, the agency said.

In addition, the company determined that its U.S. onshore unconventional petroleum assets were non-core and would be divested.

DBRS said it believes that the sale of these assets should strengthen BHP’s business model, because it will allow BHP to focus management time, and potentially a portion of the proceeds, on its conventional petroleum assets.

The agency said a portion of the proceeds could also potentially be used for additional debt reduction, leading to further improvement in its metrics.

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