MUMBAI (Thomson Financial) - Fitch Ratings said it affirmed Anglo American PLC's long-term issuer default rating at 'A' with a stable outlook to reflect the company's proposed 4 bln usd share buyback programme.
Fitch also affirmed the company's 'F1' short-term issuer default rating its 'A' the senior unsecured issuances.
Fitch sees the share buyback as a utilisation of the company's surplus cash flows generated by continuing high commodity prices, and not as a move away from its historically conservative profile.
The ratings agency also noted Anglo American's strong earnings and cash flows for the six months to June 30.
The announced share buyback programme is likely to see debt levels increase as at fiscal year ending 2007, although this will depend upon the timing of proceeds from the planned sale of Anglo's Tarmac aggregates business, Fitch added.
Anglo American is the world's world's largest diversified mining group by revenue and assets. TFN.newsdesk@thomson.com npr/ssa COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.