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Anglo American (AALLN Baa2/BBB*-/BBB+): Moody’s Outlook Stable

CREDIT RATING
  • Moody’s moved Anglo from Outlook Positive to Stable yesterday afternoon, reflecting the updated business plan.
  • Reduced scope of the business and execution risks remove the positive ratings pressure.
  • Points to a base case of 1.8x adjusted leverage assuming asset sales proceeds can half debt levels. Anglo targets below 1.5x at the bottom of the cycle and will have lower capex burden post disposals.
  • Leverage thresholds 1.25x / 2x on a sustained basis.
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  • Moody’s moved Anglo from Outlook Positive to Stable yesterday afternoon, reflecting the updated business plan.
  • Reduced scope of the business and execution risks remove the positive ratings pressure.
  • Points to a base case of 1.8x adjusted leverage assuming asset sales proceeds can half debt levels. Anglo targets below 1.5x at the bottom of the cycle and will have lower capex burden post disposals.
  • Leverage thresholds 1.25x / 2x on a sustained basis.