Move follows similar one by S&P as mining giant looks to trim debt amid soft commodity prices
LONDON— Glencore PLC suffered a fresh blow Thursday, when Moody’s Investors Service downgraded the outlook for the commodity giant’s credit rating due to concerns over continued weakness in commodity prices, just days after the company unveiled plans to slash its heavy debt load.
Moody’s said it wasn’t changing the miner and trader’s investment-grade credit rating, but revising its outlook on that rating to negative from stable.
Standard & Poor’s Ratings Services, which downgraded its outlook on Glencore last week amid concerns about its debt and soft commodity prices, said late Wednesday that its outlook remains negative despite the mining giant’s recent moves to trim its debt.
S&P said it sees the moves as “material and consistent with the company’s commitment to maintain the current ratings,” but the mining industry’s prospects “remain negative” and Glencore is particularly at risk “if copper prices soften again,” S&P said.
Moody’s, in changing its outlook for Glencore’s credit rating, also cited the company’s vulnerability to a further decline in copper prices.
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