Anglo American (LSE:AAL) Rating Upwardly Revised by Moody's

Moody's Increases Anglo American Rating

Anglo American (LSE:AAL) received an upwardly revised outlook on their Baa1/P-2 senior unsecured ratings from Moody's, as they changed them from negative to stable.

Much of the reason for being revised upward according to Moody's was improved operations and a more favorable economic climate perceived to be in the beginnings of recovery.

Operationally, Moody's felt there was increased productivity while costs were being lowered, which should help the operating cash flow of the company, generating the better outlook. Operating profit had plunged in 2009 by over 50 percent.

On the macroeconomic side, the demand for commodities, even in recessionary times like these is increasing, and Anglo should benefit strongly from that, assuming it's sustainable.