Last month BHP announced its intention to issue multi-currency hybrid capital securities after holding a series of investor briefings. The design of the hybrids would allow them to be classified as part equity, thus keeping BHP’s balance sheet in shape and maintaining its A+ credit rating. Earlier in the year ratings agencies had put BHP’s and Rio’s debt on a “credit outlook negative” watch and now Commonwealth Bank thinks that outlook will be converted into an actual downgrade. In a brief mention regarding BHP’s upcoming subordinated debt notes, the bank said its “base case” scenario is for BHP to be downgraded to A in the 2016 financial year.