Fortescue scores debt rating upgrade

Moody’s has lifted Fortescue Metals’ debt rating in the wake of its full-year profit.

Ratings agency Moody’s has upgraded the credit rating of Andrew Forrest’s Fortescue Metals’ in the wake of its record dividend payout and rise in full-year profit announced this week.

Moody’s upgraded Fortescue’s corporate family rating to Ba2 from Ba3, giving it an improved rating of its ability to repay short term debt.

The agency has upgraded Fortescue’s senior secured credit rating to Ba1 and the senior unsecured credit rating to B1.

“While Moody’s expects iron ore prices to remain volatile with risk to the downside, Fortescue’s initiatives to reduce cost and debt levels and the prospects for further debt reduction improves its ability to manage this volatility, while maintaining solid metrics for the rating,” said Moody’s vice president Matthew Moore.

AAP