Research Update: Global Mining And Trading Group Glencore PLC Upgraded To 'BBB+' On Robust Financial Framework; Outlook Stable

Glencore is maintaining debt and leverage at structurally lower levels than those prior to 2015, in line with its financial policies. We estimate that Glencore has established a financial cushion such that credit metrics are likely to remain adequate even if metal prices and cash flows decline moderately. We are therefore raising our long-term rating on Glencore to 'BBB+' from 'BBB' and affirming the short-term rating at 'A-2'. The stable outlook reflects our view that Glencore has sufficient room at the 'BBB+' rating level to accommodate modest acquisitions and moderate adverse commodity price or operational developments. On May 29, 2018, S&P Global Ratings raised its long-term issuer credit rating on global diversified mining and trading company Glencore PLC and its

...+ Glencore is maintaining debt and leverage at structurally lower levels than those prior to 2015, in line with its financial policies. + We estimate that Glencore has established a financial cushion such that credit metrics are likely to remain adequate even if metal prices and cash flows decline moderately. + We are therefore raising our long-term rating on Glencore to '###+' from '###' and affirming the short-term rating at 'A-2'. + The stable outlook reflects our view that Glencore has sufficient room at the '###+' rating level to accommodate modest acquisitions and moderate adverse commodity price or operational developments....

Research Update