Glencore downplays impact of any credit ratings downgrade
Glencore (OTCPK:GLCNF, OTCPK:GLNCY) continues to push back against critics, saying that in the event of rating downgrade, the ratings' grid in its $6.8B five-year revolving credit facility would provide only a "modest" additional margin step-up.Glencore also says it has $4.5B of bonds outstanding, where a margin step-up of 125 basis points would apply if they were rated sub-investment grade by the agencies.Meanwhile, Investec is not backing off its gloomy view that recently helped to hammer Glencore shares, saying the company blames everyone else for its woes; yesterday, Glencore urged rivals to shut loss-making mines and blamed hedge funds for wilting commodities prices.Shares continue their roller-coaster ride in London trading, falling as much as 8% earlier but now +2.3% to its highest level in two weeks.
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