Global mining company Anglo American PLC has published strong financial results for 2017 on the back of healthy prices across its portfolio and cost and volume improvements. We see these trends continuing in 2018. In our view, Anglo American's balance sheet saw a step change in 2017, when it reduced its reported net debt by a further $4 billion, completing a reduction in debt of over $7.5 billion in the last two years. Under our base-case scenario, we expect further deleveraging in 2018. These factors suggest that Anglo American's credit ratios are likely to be comfortably above the level we consider commensurate with a 'BBB-' rating in the coming years, even if we assume a material step-up in the company's
