We recently lowered our price assumptions for iron ore reflecting the challenging market conditions due to ongoing excess supply and lower-than-expected demand from China and other developing markets. In our view, the improvement in Fortescue's cost of production, reduced capital expenditure, and reduction in outstanding debt moderate the impact of lower price assumptions on Fortescue's key credit measures. As a result, we are affirming the 'BB' rating on the company. The outlook remains negative, reflecting our concerns on the current challenging conditions and the sensitivity of Fortescue's profitability and credit metrics to movements in iron ore prices and foreign exchange. On Feb. 3, 2016, Standard&Poor's Ratings Services affirmed its 'BB' corporate credit rating on Australia-based mining company Fortescue
