The ratings on global diversified mining group Anglo American PLC reflect its scale and scope of operations; strong market positions in attractive segments, notably platinum and copper; increased focus on mining activities and more active growth strategy; strengthened profitability; and strong cash flows. These strengths are partly offset by a less conservative financial policy, with debt more than doubling to fund significant capital expenditures and acquisitions; heightened execution risks on large projects; persistent industry cost pressures, capital intensity and cyclicality; a weakening economic outlook in developed markets; and country risks from exposure to South Africa. Although Anglo continues to perform strongly, management has adopted a less conservative financial policy over the past year, which looks set to continue. This is
