International credit rating agency Moody’s has announced that it has upgraded the credit rating of Australian iron ore miner Fortescue to Ba2 from Ba3. The outlook remains stable.
According to Moody’s statement, the upgrade to Fortescue's ratings reflects the considerable progress that the company made in reducing its debt levels in the financial year 2015-16 and Moody's expectation that it will continue to reduce debt further in the financial year 2016-17. The company's ongoing cost and debt reduction initiatives will allow it to maintain conservative financial metrics over the next 12-24 months.