MELBOURNE (Standard&Poor's) Aug. 24, 2015--Standard&Poor's Ratings Services said today that Fortescue Metals Group Ltd.'s (BB/Negative/--) weaker results for the financial year ended June 30, 2015, are in line with our rating expectations. Due to the material fall in iron ore prices, the company's funds from operations (FFO) to debt dropped to the low 20% level in fiscal 2015 from 44% in fiscal 2014, and debt to EBITDA rose to the high 3x level from 1.6x previously. Notwithstanding the fall in earnings, Fortescue's results demonstrate its improving cost position amid challenging trading conditions. The continuing reduction in C1 costs to US$19 per wet metric ton (wmt) in June 2015 reflects the company's initiatives to reduce its production
