Standard & Poor's downgraded commodities dealer and
manual laborer Glencore's (GLEN.L) credit rating on Thursday, citing a slump in
commodities costs and uncertainty concerning metals demand.
S&P cut Glencore's credit ratings to BBB-/A-3 from
BBB/A-2, with a stable outlook.
"The downgrade reflects each our read of the fabric
challenges the mining business faces, with enlarged uncertainty concerning
future in operation performance in 2016 and 2017," S&P
aforementioned in a very statement.
Glencore came fraught last year from investors and ratings
agencies to chop its web debt of around $30 billion, one in all the best within
the business, as costs for commodities like copper and coal hit multi-year
lows.
The company has since taken action to chop the debt -
together with merchandising assets, dynamical dividends and capital outlay -
and was targeting web debt of $18 billion to $19 billion by the top of 2016.
"We see the potential for a negative rating action as
low, given the expected continuing deleveraging in 2016-2017, supported by
management's sturdy commitment to strengthening its credit metrics and decisive
actions to this point," S&P said.
Glencore has aforementioned it remained focussed on
protective its investment grade ratings.
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