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Credit ratings and ratios

Credit ratings

Anglo American’s current credit ratings are shown in the table below.

Credit ratings* Short term Long term Outlook
       
Standard and Poor’s A-2 A- Stable
Moodys P-1 A2 Negative
DBRS R-1(M) A(H) Stable

* as at 30 April 2008

Credit ratios

    2003 2004 2005 2006 2007
Net debt/(cash) US$m (8,633) (8,243) (4,993) 3,324 5,239
Gearing(1) (%) 32.0 25.4 17.0 12.9 20.0
EBITDA(2) US$m 4,785 7,031 8,959 12,197 12,132
EBITDA margin(3) (%) 19.2 22.0 26.0 31.6 34.0
EBITDA net interest cover(4) x 9.3 18.5 20.0 45.5 42.0
FFO(5)/net adjusted debt(6) (%) 25 50 89 159 104
RCF(7) /net adjusted debt (%) 16 40 69 99 73
Operating cashflow US$m 3,184 5,291 7,265 10,057

  1. Gearing is calculated as net debt divided by net assets plus net debt less investments in associates.
  2. EBITDA is operating profit before special items, operating remeasurements, depreciation and amortisation in subsidiaries and joint ventures and share of EBITDA of associates.
  3. EBITDA margin is calculated as EBITDA divided by revenue (including associates).
  4. EBITDA net interest cover is calculated as EBITDA divided by net finance costs, excluding other net financial income, exchange losses and gains on monetary assets and liabilities, amortisation of discounts on provisions, special items and financial remeasurements, including share of associates' net interest expense.
  5. Funds from operations (FFO) is defined as cashflow from operating activities less net interest before working capital changes.
  6. Net adjusted debt is net debt plus pension deficit, operating leases, restoration provisions and loans and performance guarantees.
  7. Retained cash flow (RCF) equals funds from operations less dividends paid.