Fortescue Metals Unsecured Notes Rating Lowered To 'BB'; Issuer Rating Unaffected

MELBOURNE (S&P Global Ratings) July 31, 2017--S&P Global Ratings today said that it has lowered its long-term issue credit rating on Fortescue Metals Group Ltd.'s senior unsecured notes due in 2022 and 2024 to 'BB' from 'BB+'. The action reflects our view of a lower recovery amount available for senior unsecured noteholders because of the potential for a higher amount of priority claims under our hypothetical default scenario, following the company's placement of a US$525 million senior secured revolving credit facility. Our corporate credit rating on Fortescue (BB+/Stable/--) is unaffected due to the company's continued strong operating performance and ability to maintain credit metrics in line with the 'BB+' rating even under moderate iron ore price pressure. The corporate credit

...MELBOURNE (S&P Global Ratings) July 31, 2017--S&P Global Ratings today said that it has lowered its long-term issue credit rating on Fortescue Metals Group Ltd.'s senior unsecured notes due in 2022 and 2024 to '##' from '##+'. The action reflects our view of a lower recovery amount available for senior unsecured noteholders because of the potential for a higher amount of priority claims under our hypothetical default scenario, following the company's placement of a US$525 million senior secured revolving credit facility. Our corporate credit rating on Fortescue (##+/Stable/--) is unaffected due to the company's continued strong operating performance and ability to maintain credit metrics in line with the '##+' rating even under moderate iron ore price pressure. The corporate credit rating on Fortescue and the issue rating on the company's senior secured notes due 2022 are unaffected by the new revolving credit facility. The issuer rating on Fortescue continues to be supported by the company's...

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