The ratings on U.K.-based diversified mining group Anglo American PLC (Anglo) reflect its strong positions in attractive market segments, notably in platinum and copper, supported by strong cash flows, low debt, and a conservative financial policy. These strengths are partly offset by the inherently capital-intensive, cyclical, and volatile nature of the mining industry; persistent industrywide cost pressures; increasing capital expenditures and shareholder returns; and its exposure to South Africa. Anglo continues to have a strong financial risk profile, even when factoring in the group's plans for a further $4 billion buyback program, which was announced in August 2007. We do not believe the program signals a more aggressive financial policy, but instead see it as a continuation of the group's
