...Flexible Dividend Policy: BHP Billiton Limited/Plc's (BHPB) decision to move away from a progressive dividend policy will give it better financial flexibility. The new policy includes a 50% pay-out ratio on underlying attributable profit, and the board has discretion to return additional cash above this pay-out ratio, as seen in the first-half results. The 16 cents per share includes a minimum pay-out of 4 cents per share and another 12 cents per share. The Outlook remains Negative due to high leverage for an `A+' rating and the weakness in commodity markets. Fitch Ratings projects that BHPB's cash flow generation will continue to exceed accounting profits for the next two years and therefore expects BHPB to continue to pay dividends above the 50% pay-out ratio, although in absolute dollar terms they will still be materially lower than the amounts paid in recent years. Capex Optimisation: BHPB cut its capital and exploration expenditure to USD7bn in financial 2016 (to end-June; FY16) and...
