The stable outlook reflects our expectation that the combined Glencore Xstrata, a global diversified mining group, should be able to maintain a Standard&Poor's adjusted ratio of funds from operations (FFO) to debt of about 25% in 2013 and 2014. We believe that rating headroom is therefore currently limited, but expect management to adjust capex or take other measures to keep debt from rising materially in 2013. The stable outlook also factors in our expectation of stronger positive free operating cash flow (FOCF) in 2014, after the capex program peaks and EBITDA benefits from additional production. We might lower the rating on Glencore Xstrata if commodity prices fell below our assumptions, or in case of a sizable acquisition that
