BHP credit rating cut to A

Standard & Poor’s has cut BHP’s credit rating on senior secured notes from A+ to A as a result of falling commodity prices and the “very challenging market conditions and increased demand uncertainty over the coming years”. Subordinated notes were also downgraded from A- to BBB+. The downgrade came with a “credit watch with negative implications” meaning the rating could be cut again should conditions worsen. The downgrade was flagged in YieldReport on 22 January after S&P slashed its commodity price forecasts. BHP said in a statement that it had the “strongest credit rating in the sector and remains committed to maintaining its strong balance sheet”.