Fortescue Rating Cut by S&P as Iron Ore Plunge Pressures Profit
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Fortescue Metals Group Ltd., the fourth-largest iron-ore producer, had its corporate credit rating cut by Standard & Poor’s on expectations the commodity’s price collapse will erode profits over the next two years.
The Perth-based producer, which has $7.5 billion in net debt, was cut one step to BB, two levels below investment grade, S&P said in a statement Wednesday. The company, whose rating has a negative outlook, could face a further downgrade if the steel-making ingredient trades below $45 a metric ton for a prolonged period, the credit assessor said.