PrefBlog

DBRS has announced:

DBRS has today upgraded the ratings of Xstrata plc, Xstrata (Schweiz) AG, Xstrata Capital Corporation A.V.V., Falconbridge Limited, and Xstrata Finance (Canada) Limited (collectively Xstrata or the Company) to A (low). The rating action results from the Company’s strengthening financial profile over the last twelve months, with Xstrata’s financial profile now brought in line with its business profile (which was strengthened substantially last year with the Falconbridge, Cerrejón and Tintaya acquisitions).
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DBRS expects high commodity prices (driven by strong market demand/supply fundamentals) to allow the Company to continue generating strong cash flows from operations. Going forward, DBRS expects the Company to use its strong cash flows to finance its expansionary capex program, its acquisition program and possibly to continue to reduce its debt levels. The Company’s credit metrics are expected to remain at current levels for the mid term.

Falconbridge Preferreds continues to be rated P-2(low) by S&P.

As previously reported, Falconbridge’s dividends are “eligible”.

This entry was posted on Friday, October 12th, 2007 at 5:01 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.