DBRS Places BHP Billiton Under Review – Developing Following Release of Demerger Documents

DBRS Limited (DBRS) has today placed its unsolicited A (high) Stable Issuer Ratings of BHP Billiton Ltd. and BHP Billiton plc (collectively BHP Billiton or the Group) Under Review with Developing Implications following the announcement on March 17, 2015, that BHP Billiton’s board of directors has recommended the Group’s shareholders approve a proposed demerger of South32 at the shareholder meetings to be held on May 6, 2015. In conjunction with BHP Billiton’s announcement, the Group has released extensive documentation related to the demerger, which will allow DBRS to better assess the impact of the demerger on the Group’s business profile and financial metrics. In the interim, DBRS has placed its ratings of the Group Under Review with Developing Implications, consistent with their initial impression that (as stated in their August 20, 2014, comment release on the proposed demerger), “Overall, DBRS does not consider the anticipated changes to have a material impact on the Company’s financial risk profile.”

The proposed demerger is to be effected via a distribution of South32 shares by way of an in-specie dividend to shareholders in both BHP Billiton Limited and BHP Billiton Plc. The proposed demerger remains subject to the approval of a demerger resolution by an ordinary resolution of BHP Billiton shareholders voting on a joint electorate basis.

DBRS intends to resolve its Under Review Developing status of the Group’s rating following a review of the materials released today in the context of the go-forward prospects for the demerged BHP Billiton.

Notes:
DBRS ratings of BHP Billiton plc and BHP Billiton Ltd. (BHP Billiton) are unsolicited, were not initiated at the request of the issuer, did not include participation by the issuer or any related third party and are based on public information only.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodologies are Rating Companies in the Mining Industry (Primary) and Rating Companies in the Oil and Gas Industry (Secondary), which can be found on our website under Methodologies.