The ratings on U.K.-based mining group Anglo American PLC (Anglo) reflect its above-average business profile as a global, diversified mining, and natural resource group and its conservative financial profile. As the world's second-largest mining group--behind BHP Billiton PLC--Anglo benefits from very strong market positions in a large number of capital-intensive and cyclical extractive industries including platinum, diamonds, gold, and coal. The risk of operating in South Africa, where the group generated 44% of earnings in the first half of 2005, is a constraining rating factor. The group has sought to reduce its dependence on cyclical commodities by expanding into building materials operations such as Tarmac in the U.K., and pulp and downstream paper products through Mondi in Europe. This has
