We anticipate a prolonged downturn for the mining industry and negative free operating cash flows at a significant number of global mining company Anglo American's assets, causing us to assess its business risk profile at the lower end of the satisfactory range. Anglo American announced a restructuring, under which its future portfolio will include three divisions (diamonds, copper, and platinum). The rest of the assets have been deemed to be noncore and many are expected to be divested or closed over time. Although the program should enable Anglo to lower its debt levels, the depressed market means that we view the proceeds and timeline as very uncertain. We are therefore lowering our ratings on Anglo American to 'BB/B' from 'BBB-/A-3'
