The ratings on global diversified mining group Anglo American PLC (Anglo) reflect our view of Anglo's "strong" business risk profile and "intermediate" financial risk profile. Supportive factors include the group's improving cost positions, healthy margins, corrective actions, and rebound in metals and minerals prices. In addition, Anglo has improved its liquidity through debt issuance, and its financial flexibility through planned disposals and the suspension of dividends. Constraining factors include price volatility, substantial capital expenditures (capex), project execution risks, and the risks of operating in South Africa. Anglo plans significant capex in coming years, including about $6 billion in 2010, to raise production by about one-third by 2013. This expenditure is mainly to complete large-scale projects underway, notably in copper, iron
