We expect global mining company Anglo American to generate material negative discretionary cash flow in 2013-2014 on the back of high capital expenditures and dividends to shareholders. We see the company's leverage increasing, with funds from operations to debt declining to about 30%-40% in 2013-2014 under our pricing assumptions, compared with 45%-50% that we consider commensurate with a 'BBB+' rating. We are therefore lowering our long-term rating on Anglo American to 'BBB' from 'BBB+'. The stable outlook reflects our view of limited further rating downside potential, given Anglo American's diversified business risk profile and strong liquidity. On April 4, 2013, Standard&Poor's Rating Services lowered its long-term corporate credit rating on global mining company Anglo American PLC and on
