S&P upgrades FMG credit rating

Standard & Poor's has upgraded its credit rating of Fortescue Metals Group (FMG) and given the miner a positive outlook.

In a statement, the ratings agency said it had lifted the miner's long-term corporate credit rating from BB to BB- with, as well as raising its senior secured debt rating to BBB- from BB and its senior unsecured debt rating to BB- from B .

Standard & Poor's said the upgrade was a result of Fortescue's increased production scale, cost reductions and diminished risk in projects.

"Underpinning our assessment of Fortescue's 'satisfactory' business risk profile is its large size and scale as the world's fourth-largest iron ore producer, its competitive cost position, and its long reserve life," the ratings agency said.

"Fortescue's limited product diversity and high exposure to China’s steel industry and volatile commodity prices offset these strengths."