Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Moody’s Investor Service on Friday downgraded the credit rating of Potash Corp. of Saskatchewan, citing concerns of a longer-than-expected fertilizer slump, ahead of the company’s planned merger with rival Agrium Inc.
Moody’s downgraded Potash’s rating to Baa1 from A3, saying its credit metrics are likely to weaken as a result of lower fertilizer prices and the potential for increased market volatility as new fertilizer capacity comes onstream within two years.
