The 'BB-' rating on Fortescue Metals Group Ltd. (Fortescue) reflects our view of the company's aggressive growth strategy, as seen in its funding approach for its expansion; limited product and geographic diversity; and exposure to volatile iron ore prices. These weaknesses are partly offset by Fortescue's relatively long-life reserve and improving iron ore production. The company also has a track record in commissioning large-scale projects within a relatively short time frame. In our opinion, Fortescue's business risk profile is "fair", reflecting its market position, long reserve life, and limited product and geographic diversity. The company produced an annualized shipping rate of more than 64 million tonnes (mt) during the quarter ended Sept. 30, 2012. This makes it the fourth-largest seaborne
