Fortescue's US$1.5 billion Senior Unsecured Notes Assigned 'BB+' Issue Rating, '4' Recovery Rating - S&P Global Ratings’ Credit Research

Fortescue's US$1.5 billion Senior Unsecured Notes Assigned 'BB+' Issue Rating, '4' Recovery Rating

Fortescue's US$1.5 billion Senior Unsecured Notes Assigned 'BB+' Issue Rating, '4' Recovery Rating - S&P Global Ratings’ Credit Research
Fortescue's US$1.5 billion Senior Unsecured Notes Assigned 'BB+' Issue Rating, '4' Recovery Rating
Published Mar 18, 2021
3 pages (1275 words) — Published Mar 18, 2021
Price US$ 150.00  |  Buy this Report Now

About This Report

  
Abstract:

MELBOURNE (S&P Global Ratings) March 19, 2021--S&P Global Ratings today said it assigned its 'BB+' issue rating and '4' recovery rating to FMG Resources (August 2006) Pty Ltd.'s new 10-year senior unsecured US$1.5 billion notes. FMG Resources (August 2006) Pty Ltd. is a wholly owned financing vehicle of Fortescue Metals Group Ltd. (BB+/Stable/--). Note proceeds will redeem the company's US$750 million 2022 notes and fund general corporate purposes, which may include debt repayment. The 'BB+' long-term issuer credit rating on the company remains unchanged. The '4' recovery rating reflects our expectations of average recovery prospects (30%-50%; rounded estimate: 40%) under our hypothetical default scenario. Our simulated default occurs in 2026. In our view, Fortescue's creditors would realize greater value through

  
Brief Excerpt:

...March 18, 2021 MELBOURNE (S&P Global Ratings) March 19, 2021--S&P Global Ratings today said it assigned its '##+' issue rating and '4' recovery rating to FMG Resources (August 2006) Pty Ltd.'s new 10-year senior unsecured US$1.5 billion notes. FMG Resources (August 2006) Pty Ltd. is a wholly owned financing vehicle of Fortescue Metals Group Ltd. (##+/Stable/--). Note proceeds will redeem the company's US$750 million 2022 notes and fund general corporate purposes, which may include debt repayment. The '##+' long-term issuer credit rating on the company remains unchanged. The '4' recovery rating reflects our expectations of average recovery prospects (30%-50%; rounded estimate: 40%) under our hypothetical default scenario. Our simulated default occurs in 2026. In our view, Fortescue's creditors would realize greater value through reorganizing the company as a going concern than liquidating its assets....

  
Report Type:

Ratings Action

Ticker
777102Z@AU
Issuer
FMG Resources (August 2006) Pty Ltd.
Sector
Global Issuers
Country
Australia
Region
Pacific
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Fortescue's US$1.5 billion Senior Unsecured Notes Assigned 'BB+' Issue Rating, '4' Recovery Rating" Mar 18, 2021. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Fortescue-s-US-1-5-billion-Senior-Unsecured-Notes-Assigned-BB-Issue-Rating-4-Recovery-Rating-2614183>
  
APA:
S&P Global Ratings’ Credit Research. (). Fortescue's US$1.5 billion Senior Unsecured Notes Assigned 'BB+' Issue Rating, '4' Recovery Rating Mar 18, 2021. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Fortescue-s-US-1-5-billion-Senior-Unsecured-Notes-Assigned-BB-Issue-Rating-4-Recovery-Rating-2614183>
  
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