Rating agency Moody’s on Friday said it cut its credit rating for mining giant Glencore to a notch above junk status as low commodities prices would continue to cut into earnings.
Moody’s Glencore rating went to Baa3 from its previous Baa2 notation.
“The pricing environment in mining will remain unfavourable in 2016-17, making a return to the previous level of earnings unlikely,” said Moody’s Glencore lead analyst Elena Nadtotchi in a statement.
Weak metal prices had “significantly reduced the earnings capability” of Glencore’s industrial division, she said.
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Moody’s Glencore rating went to Baa3 from its previous Baa2 notation.
“The pricing environment in mining will remain unfavourable in 2016-17, making a return to the previous level of earnings unlikely,” said Moody’s Glencore lead analyst Elena Nadtotchi in a statement.
Weak metal prices had “significantly reduced the earnings capability” of Glencore’s industrial division, she said.
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