Bulletin: Glencore PLC Pushes Back Its Previous Plan To Reduce Risk And Its Debt Level In 2019 To 2020

LONDON (S&P Global Ratings) Feb. 19, 2020--S&P Global Ratings today said that the $11.6 billion of underlying EBITDA mining and trading company Glencore PLC (BBB+/Stable/A-2) reported for 2019 is somewhat weaker than expected, mainly due to lower realized prices in the fourth quarter of 2019 in addition to some production issues. Since our last publication in June 2019, when we projected underlying EBITDA of $14 billion-$15 billion, we lowered our price assumptions for the rest of 2019 and the company reduced its production guidance. Glencore's net debt has also increased by about $1.5 billion, which implies a preliminary adjusted funds from operations (FFO)-to-debt ratio of close to 45%. Our minimum multiyear threshold is 42.5%. Again, this is weaker than our

...February 19, 2020 LONDON (S&P Global Ratings) Feb. 19, 2020--S&P Global Ratings today said that the $11.6 billion of underlying EBITDA mining and trading company Glencore PLC (###+/Stable/A-2) reported for 2019 is somewhat weaker than expected, mainly due to lower realized prices in the fourth quarter of 2019 in addition to some production issues. Since our last publication in June 2019, when we projected underlying EBITDA of $14 billion-$15 billion, we lowered our price assumptions for the rest of 2019 and the company reduced its production guidance. Glencore's net debt has also increased by about $1.5 billion, which implies a preliminary adjusted funds from operations (FFO)-to-debt ratio of close to 45%. Our minimum multiyear threshold is 42.5%. Again, this is weaker than our earlier prediction of more than 60% in 2019. That said, the company's supportive financial policy and ability to restore its financial flexibility support the current rating. We expect Glencore's adjusted FFO to...

Bulletin