Global Mining: With iron ore prices in free fall, S&P’s warns of imminent downgrade for several miners

Brazillian Vale Iron ore Carajas mine

Brazillian Vale Iron ore Carajas mine

The risk rating agency Standard & Poor’s said on Monday it may cut in two or three weeks the notes of risk of several renowned mining due to lower prices estimated for iron ore in this and the coming years.

During the next two weeks, the agency will assess with more detail the plans of companies to deal with the negative impact of falling ore prices in the cash flows, the company said in a statement.

Among the other companies that had their risk rating placed on negative watch by S&P are Vale SA, Rio Tinto, BHP Billiton, Anglo American, CAP SA, Exxaro Resources, Fortescue Metals Group and Eurasian Resources Group, which while at the same time collaborate with the oversupply, feel the negative effects of falling prices in the ore sales revenue.

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