FMG sees no effect of Moody's score reduce

Fortescue Metals has performed down a downgrade by means of rankings organisation Moody's, announcing it'll don't have any effect on its debt shape.

Moody's reduce its score on Fortescue via a notch late on Monday, bringing up worsening economic metrics amid a extended downturn in the zone.

The enterprise reduce Fortescue's senior secured rating - already beneath funding grade, from "Ba1" to "Ba2" and positioned it on negative outlook.

"Our consciousness on efficaciously decreasing operating and capital costs maintains to offset the effect of decrease iron ore costs," leader monetary officer Stephen Pearce replied in a statement.

Fortescue mentioned a 4 in step with cent drop in half of yr income to $US319 million ($A441.ninety five million) in February, however additionally cut its price steerage similarly on the again of an ongoing financial savings software.

earlier this month, Fortescue announced it's far in talks with Brazilian iron ore large Vale to strike a deal that would provide the larger rival a stake inside the Australian miner, and help the two agencies enhance their mixed marketplace share in China.

Moody's stated it expects Fortescue's credit metrics to stay weak over the next 12 to 18 months, with the downturn being deeper and prospects for a restoration extended.

"The downgrade displays Moody's expectation of weaker overall performance over the subsequent two years on account of the extensive drop in iron ore charges," the rankings corporation said.

however, it cited the miner's work during the last 24 months to sharply force down fees, and said it expects Fortescue's operations to stay quite simply above breakeven tiers under its base-case assumptions of the iron ore rate.

Fortescue shares had been first of all unaffected by means of the downgrade, growing in early change before last four cents decrease at $2.54.

On Monday, round 20 million stocks in Fortescue modified arms in a block trade, with media reviews indicating Russian investor Viktor Rashnikov may additionally have offloaded part of his retaining within the corporation.