| Moody's Investors Service maintains its negative outlook on the global base metals, US steel and US coal industries as persistently low prices and continued volatility in the commodities markets will weaken the operating metrics for issuers in all three sectors in 2016. Slowing Chinese growth will continue to be the main source of volatility for the global base metals market, although weak or contracting growth in Europe and Brazil will also reduce demand and further weigh on prices in 2016, according to "Base Metals - Global, Steel, Coal -- US: 2016 Outlook -- Gauges Remain in the Red as Price Slide Continues."
"Single commodity producers, particularly of copper and aluminum, will be more vulnerable than those that are more diversified," said Carol Cowan, a Moody's Senior Vice President. "But producers' costs, liquidity and debt maturity profiles are key considerations that would also affect their credit profiles and ability to weather persistently low prices." (Press Release)
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