FORTESCUE HAS ITS DEBT RATING CUT BY MOODY'S

Fortescue Metals Group, the Australian iron ore producer that last week announced an accord with Brazilian counterpart Vale, had its debt rating cut by Moody’s Investors Service.

The credit assessor cut its score on the Perth-based miner one level to Ba2, two steps below investment-grade, Moody’s said in a statement on Monday. It has a negative outlook on the rating.

The downgrade follows a drop in iron ore of more than 70% from its peak in 2011 amid weakening Chinese demand and a ramp up in supply. While Fortescue has reduced operating costs and used free cash flow to cut debt, Moody’s said a “fundamental downward shift in the mining sector” resulted in weaker credit metrics for the company.