Fortescue Faces Rating Cut From Moody’s on Iron Ore Slump
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Fortescue Metals Group Ltd., the biggest seller of junk-rated mining bonds, is being reviewed by Moody’s Investors Service for a possible cut to its credit score because of a slump in iron ore prices.
Moody’s may lower the Perth-based company’s Ba3 rating, the third-highest junk grade, the ratings firm said in a statement dated yesterday, after iron ore prices fell 24 percent this month. A downgrade would affect about $7.6 billion of debt securities, it said.