https://www.engineeringnews.co.za

Moody's changes outlook on Glencore's ratings to positive from stable

24th April 2018

By: Nadine James

Features Deputy Editor

     

Font size: - +

JOHANNESBURG (miningweekly.com) – Moody's Investors Service has assigned Glencore a ‘Baa2’ long-term issuer rating with a positive outlook.

Moody’s says Glencore's improved credit profile was driven by higher commodity prices and consistently low production costs. 

It adds that Glencore’s improved earnings before interest, taxes, depreciation and amortisation (Ebitda), reduced leverage and higher funds from operations, supported by the group’s adjusted dividend policy, enables Glencore to better withstand volatility in the commodity markets.

“[Our decision] reflects material operating profit growth in 2017, which, together with continued conservative management of the balance sheet structure and leverage profile, positions Glencore strongly in the ‘Baa2’ rating category,” says Moody's senior VP Sven Reinke, adding that the rating could be upgraded if Glencore continues to demonstrate prudent balance sheet management.

Based on the high point of the range for commodity price assumptions for copper, zinc and thermal coal, Moody’s expects Glencore's Ebitda to improve to around $16.1-billion this year, compared with $13.4-billion in 2017.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Werner South Africa Pumps & Equipment (PTY) LTD
Werner South Africa Pumps & Equipment (PTY) LTD

For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...

VISIT SHOWROOM 
Schauenburg SmartMine IoT
Schauenburg SmartMine IoT

SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (12/04/2024)
12th April 2024 By: Martin Creamer
Magazine round up | 12 April 2024
Magazine round up | 12 April 2024
12th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:2.82 2.945s - 156pq - 2rq
Subscribe Now