The ratings on global diversified mining group Anglo American PLC (Anglo) reflect Standard&Poor's Ratings Services' view of Anglo's "strong" business risk profile and "intermediate" financial risk profile. Supportive factors include the group's improving cost positions, healthy margins, and new production coming from new projects. In addition, Anglo has decreased its debt through high free cash flow and disposals, amid the favorable market environment, and improved its maturity profile. We also take into account the group's moderate financial policy. Constraints for Anglo's ratings include volatile cash flows, substantial minority holdings in its iron ore asset Kumba Iron Ore, capital expenditures, which we believe will still remain sizable; and its exposure to South African country risks. These include compliance with
