...New Names, New Risks: The credit ratings of some metals and mining companies with large- scale, low-cost and diversified operations have slipped as commodity prices weakened. Debt structures for these companies are typically unsecured with negative pledge clauses and otherwise limited covenant protection. Sector risks include commodity price volatility, a need to replace reserves, and sovereign challenges, but there are also issuer-specific risks. This report examines key risks for current and former `BBB¡' metals and mining issuers. Rating Through the Cycle: Fitch Ratings forecasts financial performance and makes assumptions regarding future prices, costs and self-help measures. Fitch's mid-cycle price assumptions are driven in the near term by current trading conditions and further out by supply and demand fundamentals. Fitch views 2015¡2016 as the trough for most commodity prices. Stress Versus Deterioration: Fitch analyzes the resilience of capital structures and business operating...
