Fitch Revises Anglo American Outlook to Stable on Lower Leverage Projections

Fitch Ratings has revised its outlook on mining group Anglo American plc (LSE:AAL) to Stable from Negative, citing an improved forecast for the company's financial leverage. The credit rating agency affirmed the multinational's Long-Term Issuer Default Rating at BBB+.

Key Drivers for the Outlook Change

The revision is primarily based on Fitch's expectation that strong operational performance and higher-than-previously-assumed copper prices will support lower debt levels. The ratings agency forecasts Anglo American's EBITDA net leverage will remain below 1.2x in the 2026-2029 period.

This improved financial footing is expected to give the company more flexibility in its capital allocation. Fitch noted that both Anglo American and its merger target, Teck, reported strong results for the first half of 2026, benefiting from high copper prices and by-product credits from precious metals.

Asset Disposals and Corporate Strategy

Anglo American's progress on its corporate simplification plan was a key factor in the decision. The company has made significant strides in divesting non-core assets to focus its portfolio.

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Key disposals highlighted by the source include:

• A May 2026 sale agreement for its steelmaking coal assets to Dhilmar Limited for up to $3.875 billion.
• The ongoing process to sell its 85% stake in diamond producer De Beers.
• Disposals in 2025 totaling $3.4 billion, which included the Jellinbah coal asset.

Impact of Pending Teck Merger

The outlook revision also considers the pending merger with Teck, which Fitch expects to close by the end of the first quarter of 2027. The deal is set to transform Anglo American into a copper-focused powerhouse, a strategic move given the metal's importance in the global energy transition.

Fitch projects the merger will increase Anglo American's annual copper output by about 450,000 tonnes to a combined 1.2 million tonnes. The combined group is forecast to generate a 2026 pro forma EBITDA of $11.5 billion, with copper contributing approximately 75% of that total. The transaction is still pending final regulatory clearance, notably antitrust approval from China.