...South32 Ltd.'s commitment to a conservative capital structure and low leverage supports a strong balance sheet through the cycle. The company's actively managed balance sheet enabled it to maintain adequate rating buffer and overcome tough trading conditions in 2016 that affected its main commodities. This has allowed South32 to capitalize on the commodity price recovery over the past two years, and fund its recent acquisitions. The highly cyclical mining industry tempers our favorable view of South32's competitive position and portfolio diversity. The company's operating results and credit measures are sensitive to volatile commodity prices¡-albeit South32 is currently benefiting from favorable pricing conditions. The completed acquisitions of Arizona Mining (South32 100% share) and Eagle Downs (South32 50% share) do not materially change South32's country risk exposure. Arizona Mining's Hermosa Project is based in Arizona, U.S., and Eagle Downs' operations are located in Queensland, Australia....
