Glencore's deeper debt cuts spur optimism

Mining company seen as able to retain its investment-grade credit rating amid commodities rout


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...


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