Aggressive growth strategy, reflecting the size, pace, and funding approach associated with its expansion projects Limited product diversity Asset concentration risk Credit metrics are stronger for the rating level Low cost production and long-life reserve Track record in commissioning large-scale projects The 'B+' corporate credit rating on Australia-based Fortescue Metals Group Ltd. reflects our view of Fortescue's aggressive growth strategy, limited product diversity, and asset concentration risk. These weaknesses are partly offset by the company's relatively low cost production, long-life reserve, improving cash flows due to a buoyant iron ore market, and the company's track record in commissioning large-scale projects. In our opinion, Fortescue's fair business risk profile reflects its low cost production, long reserve life, and limited product diversity.
