FAL.PR.A / FAL.PR.B / FAL.PR.H Upgraded by DBRS

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).

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”.

2 Responses to “FAL.PR.A / FAL.PR.B / FAL.PR.H Upgraded by DBRS”

  1. […] FAL.PR.H is currently in the PerpetualPremium index; it was moved there from Scraps in the 2007-10-31 rebalancing following the DBRS credit upgrade. […]

  2. […] Update: See also previous post regarding FAL.PR.B […]

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