Fortescue reported record interim earnings and volume of ore shipped in the first-half ended Dec. 31, 2011. We believe Fortescue is on track to achieving a production run rate of 95 mtpa in the next 12 months. As a result, we have raised the corporate credit rating and associated senior unsecured debt ratings on Fortescue to 'BB-' from 'B+'. We have also affirmed the recovery rating of its senior unsecured debt at '4'. The stable outlook reflects our expectation that Fortescue's credit metrics should sustain at the 'BB-' rating level in the next two years, even if benchmark iron ore prices drop to US$120/t during the period. The 'BB-' rating can accommodate some ramp-up delays to a 155 mt run
