Bulletin: South32's Financial Prudence Pivotal Amid Uncertain Outlook

SYDNEY (S&P Global Ratings) Aug. 20, 2020—S&P Global Ratings today said that South32 Ltd.'s (BBB+/Stable/A-2) prudent capital management framework supports its solid investment-grade rating amid subdued market conditions and an uncertain outlook. Results for the year-ended June 30, 2020, reflect weak commodity prices and the negative effects of COVID-19, partially offset by a strong operating performance. Underlying EBITDA (company's measure) declined 46% to US$1,185 million. Nevertheless, the company generated US$583 million of free cash flow and maintained a net cash balance of US$298 million (company's measures). In our opinion, South32's capital management framework plays a pivotal role in protecting its balance sheet. For fiscal 2020, this included suspension of the company's on-market share buyback, dividends that reflect prevailing market conditions,

...SYDNEY (S&P Global Ratings) Aug. 20, 2020--S&P Global Ratings today said that South32 Ltd.'s (###+/Stable/A-2) prudent capital management framework supports its solid investment-grade rating amid subdued market conditions and an uncertain outlook. Results for the year-ended June 30, 2020, reflect weak commodity prices and the negative effects of COVID-19, partially offset by a strong operating performance. Underlying EBITDA (company's measure) declined 46% to US$1,185 million. Nevertheless, the company generated US$583 million of free cash flow and maintained a net cash balance of US$298 million (company's measures). In our opinion, South32's capital management framework plays a pivotal role in protecting its balance sheet. For fiscal 2020, this included suspension of the company's on-market share buyback, dividends that reflect prevailing market conditions, effective management of operating costs, and prudent capital expenditure and major growth projects. The company still intends to proceed...

Bulletin