S&P: Anglo American view to negative

Standard & Poor's said it revised the outlook on Anglo American plc to negative from stable.

The agency also said it affirmed the company's BBB+/A-2 long- and short-term corporate credit ratings.

S&P also raised the long-term South Africa national scale ratings on Anglo American to zaAA+ from zaAA and affirmed the zaA-1 short-term national scale rating.

The revision of the outlook reflects that Anglo American's business risk profile is weakening because of rising South African country risks, S&P said.

The reassessment of South African country risk follows the recent series of strikes and increased underlying social tensions and inequalities, which translates into a weaker business and investment climate, the agency said.

Mining companies in particular may face higher cost inflation as a result of the strikes, although this is mitigated by the recent substantial weakening of the South African rand, S&P said.

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