Low-cost, long-life asset base. Large scale of operations. High degree of diversity across commodities. Cyclical and capital-intensive mining industry. Concentration of assets in emerging markets, notably South Africa. Comfortable debt maturity profile. Strong liquidity Expectation of negative discretionary cash flow and increased debt. Substantial minority holdings in its key iron ore and copper operations. The negative outlook reflects the possibility of a downgrade in the coming 6-12 months if Anglo American's (Anglo's) negative free operating cash flow (FOCF) is higher or more prolonged than we currently assume. This could be the case if, for instance, Anglo American's adjusted funds from operations (FFO) to debt fell materially below 30% in 2015. In our view, a downgrade could be triggered by one
