DBRS Rates Xstrata Finance (Canada) Limited New Notes Issue at BBB (high)

DBRS has assigned a BBB (high) rating with a Stable trend to Xstrata Finance (Canada) Limited's (Xstrata Finance) issue of EUR500 million 5.25% Company Guaranteed Notes due June 13, 2017, and EUR500 million 4.875% Company Guaranteed Notes due June 14, 2012 (collectively, the Guaranteed Notes).

The Guaranteed Notes are fully and unconditionally guaranteed by Xstrata plc, Xstrata (Schweiz) AG and Xstrata Finance (Dubai) Limited. The Guaranteed Notes rank pari passu with all of Xstrata's other guaranteed debt obligations. The net proceeds of this offering will be used to refinance existing debt.

For more information on Xstrata plc, please see DBRS’s rating report published on December 15, 2006.