We view that Fortescue's competitive position has improved because its production has increased and costs have reduced. In addition, project execution risk is diminishing for the company. As such, we have raised the corporate credit rating on the company to 'BB', senior secured debt rating to 'BBB-', and senior unsecured debt rating to 'BB-'. The outlook is positive. We believe Fortescue is on track to complete its 155mtpa expansion. We expect deleveraging to occur in the next 12 months, with positive free operating cash flows following the reduction in capital expenditure in fiscal 2014. On Nov. 6, 2013, Standard&Poor's Ratings Services raised its long-term corporate credit rating on Australia-based mining company Fortescue Metals Group Ltd. to 'BB', from
