3rd Mar 2016 12:56
LONDON (Alliance News) - BHP Billiton PLC on Thursday noted an announcement from Moody's Investor Service that it has lowered the credit ratings of BHP Billiton Ltd and BHP Billiton PLC to an A3 rating with a negative outlook from A1.
The negative outlook means that the next move in rating is more likely to be down than up.
The rating on BHP Billiton's senior unsecured medium term note programme has been lowered from (P)A1 to (P)A3, and the subordinated note ratings of BHP Finance (USA) Ltd and BHP Billiton Finance Ltd have been lowered from A3 to Baa2.
The current ratings from Moody's mean that BHP Billiton's debt is still considered investment grade. A rating below Baa3 would be considered junk.
BHP said it remains committed to maintaining its strong balance sheet through its cycle.
Shares in BHP Billiton were up 3.4% at 807.80 pence Thursday afternoon.
Earlier Thursday, BHP Billiton said the Samarco joint venture has reached a settlement with the Brazilian government over the fatal dam burst last November, which will see the companies initially pay considerably less than expected.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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