Glencore's deeper debt cuts spur optimism
Mining company seen as able to retain its investment-grade credit rating amid commodities rout
London
GLENCORE plc's aggressive approach to shrinking the indus-try's biggest debt pile is fuelling optimism the trader and miner can retain its investment-grade credit rating amid the worst commodities rout in seven years.
To head off concern that an existing US$10 billion debt-reduction plan wasn't cutting deep enough, the company last week said that it's targeting net debt of as low as US$18 billion by the end of 2016, down from US$30 billion in June. Credit-default swaps insuring Glencore's debt for five years fell the past three days.
Chief executive officer Ivan Glasenberg used an investor call to reassure shareholders the balance sheet can withstand a slump in metals that's forced the top miners to restructure businesses and led most, including Glencore, to scrap dividends. With copper prices below what Standard & Poor'…
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
BP reshapes its leadership team as some executives leave company
BHP to decide on future of nickel business by August, trims met coal estimates
Even without war in the Gulf, pricier petrol is here to stay
Gold gains as Middle East tensions lift safe-haven appeal
‘No trade war’, says Biden, pushing to triple tariffs on Chinese steel
Oil falls over US$1 as demand worries outweigh Middle East supply risks