S&P cuts Rio outlook on soft commodity prices
SHARES in Rio Tinto fell 1.2 per cent yesterday after it copped a black mark from global ratings agency Standard & Poor’s on its credit report.
S&P revised its outlook fromm stable too negative e amid on- going commodity price weakness. S&P, which opted to keepp Rio’s long g and short- term corpor- ate credit t ratings at A-/A-2, said the miner was also being reappraised for maintaining its current dividend policy which “somewhat reduces its financi cial flexibility”.
Rio Tinto last w week slightly so softened its foreca cast for Chinese st steel production of “around” a bi billion tonnes a ye year by 2030. R Rio’s shares sh shed 61 to $4 $49.15.
BHP fell 50 to $24.19.