LONDON (SHARECAST) - Following the biggest international IPO in LSE’s history Glencore AG has received a further boost, Standard & Poor’s has raised the company’s credit rating.
Glencore, the world’s leading commodities trader, is now rated at BBB, up from BBB-
The change reflects S&P’s view that the public listing of the firm provides it with more financial flexibility while also improving cash flow and liquidity.
S&P warns however that it may downgrade Glencore if the firm decides to make a significant debt-backed acquisition.
It also points out that a further upgrade is unlikely due to the “considerable volatility of Glencore’s profits and cash flows, as well as trading-related risks.”
Glencore’s $10bn public offering in May created 6 overnight billionaires amongst its senior management, including Ivan Glasenberg who is now thought to be worth nearly $9.5bn.
The market was unmoved by S&P's decision, with the shareprice broadly unchanged at 514p.
http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=4289556
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