Fortescue Metals Group 'BB+' Issuer Rating Affirmed With Stable Outlook; Debt Ratings Placed On CreditWatch Negative

MELBOURNE (Standard&Poor's) March 5, 2015--Standard&Poor's Ratings Services today placed its 'BBB' senior secured and 'BB' senior unsecured debt issue ratings on Australia-based mining company Fortescue Metals Group Ltd. (Fortescue) on CreditWatch with negative implications. At the same time, we affirmed the ?BB+? issuer credit rating on Fortescue. The outlook on the issuer credit rating remains stable. "The CreditWatch negative on Fortescue?s debt issue ratings follows the company's proposed debt refinancing of some of its senior unsecured debt with a new US$2.5 billion senior secured credit facility," Standard&Poor's credit analyst May Zhong said. "We consider the proposed refinancing is likely to result in a material deterioration in the recovery prospects for existing secured and unsecured

...MELBOURNE (Standard & Poor's) March 5, 2015--Standard & Poor's Ratings Services today placed its '###' senior secured and '##' senior unsecured debt issue ratings on Australia-based mining company Fortescue Metals Group Ltd. (Fortescue) on CreditWatch with negative implications. At the same time, we affirmed the `##+' issuer credit rating on Fortescue. The outlook on the issuer credit rating remains stable. "The CreditWatch negative on Fortescue's debt issue ratings follows the company's proposed debt refinancing of some of its senior unsecured debt with a new US$2.5 billion senior secured credit facility," Standard & Poor's credit analyst May Zhong said. "We consider the proposed refinancing is likely to result in a material deterioration in the recovery prospects for existing secured and unsecured debt providers." Under the proposed refinancing, Fortescue will increase its secured debt to about US$7.5 billion from US$4.9 billion, with the proceeds to be used to repay existing unsecured...

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