MELBOURNE (Standard&Poor's) May 18, 2011--Standard&Poor's Ratings Services today said that it had raised its corporate credit rating and senior unsecured debt ratings on Australia-based Fortescue to 'B+', from 'B'. The outlook is stable. The recovery rating is affirmed at '4'. We have also assigned our 'B+' ratings to Fortescue's proposed US$1 billion term loan B and proposed US$500 million revolving bank facility by Fortescue's funding arm, FMG Resources (August 2006) Pty Ltd. (not rated). The proceeds from the proposed issuance will be used to fund the company's 155 million tonnes per annum (mtpa) expansion. "The upgrade on Fortescue reflects our view of its relatively long-life, low-cost iron ore production, adequate liquidity, and improving cash flows due
