14th Sep 2021 21:44
(Alliance News) - Moody's Investors Service on Tuesday affirmed the Baa1 long term issuer rating of Glencore PLC and its Baa1 senior unsecured instrument ratings, but outlook was changed to stable from negative.
Moody's said the outlook change reflected the "significantly improved earnings" and reduced debt level in the first half. Further, Moody's expects that Glencore's operating and financial performance will strengthen further in the second half and remain resilient.
In addition, Moody's assumes that Glencore will return excess cash to shareholders in order to have a net debt level of no less than USD10 billion.
"Changing the outlook on Glencore's ratings to stable reflects the fast recovery from the Covid-19 related deterioration of the company's earnings which impacted the financial profile in H1 2020. Glencore is now solidly positioned in the Baa1 rating category and the outlook change also reflects our expectation that the company will retain strong financial flexibility," said Sven Reinke, Moody's lead analyst for Glencore.
The stock closed down 1.1% at 336.05 pence in London on Tuesday.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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