After the merger of Xstrata PLC and Glencore International PLC, to form Glencore Xstrata PLC, we assess the combined group's business risk profile as strong and its financial risk profile as significant. We are affirming our 'BBB/A-2' ratings on Glencore Xstrata PLC (previously Glencore International PLC). We are lowering our long-term rating on Xstrata PLC to 'BBB' from 'BBB+', to equalize it with the parent company Glencore Xstrata, and affirming the 'A-2' short-term rating. The stable outlook on Glencore Xstrata reflects our expectation that the combined group should be able to achieve neutral to positive free operating cash flow (FOCF) while maintaining a ratio of adjusted funds from operations (FFO) to debt of about 25%. PARIS (Standard&Poor's) May
