Moody's: Xstrata to positive

Moody's Investors Service said it changed to positive from stable the outlook on Xstrata plc and its guaranteed subsidiaries.

The rating action reflects the substantial progress made by Xstrata in strengthening its business and financial profile, as evidenced by the robust financial results posted in 2010, which benefited from strong momentum in terms of revenue growth and profitability enhancement throughout the year, Moody's said.

Following its 2010 financial performance, Xstrata has achieved material balance sheet deleveraging and thereby secured the financial flexibility required to execute its sizeable organic capital expenditure program that is projected to peak during 2011 or 2012, the agency added.

Xstrata has a Baa2 senior rating, Moody's said.

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