Something to think about, page-3

Thanks Frankie!! Here's the other side of the coin from the Sydney Morning Herald 15th March 2016:

Fortescue rating downgraded by Moody's, outlook negative
Benjamin Purvis

Fortescue Metals Group, the Australian iron ore producer had its debt rating cut by Moody's Investors Service. The credit assessor cut its score on the Perth-based miner one level to Ba2, two steps below investment-grade, Moody's said in a statement on Monday. It has a negative outlook on the rating. Moody's said a "fundamental downward shift in the mining sector" resulted in weaker credit metrics for the company. The downgrade follows a drop in iron ore of more than 70 per cent from its peak in 2011 amid weakening Chinese demand and a ramp up in supply. Moody's said a "fundamental downward shift in the mining sector" resulted in weaker credit metrics for the company. "Ratings need to be recalibrated to reflect expected performance over a more protracted challenging operating environment," Moody's said. "The slowing economic growth rates in China and reducing steel production rates impact demand for iron ore - leading to lower prices. Supply imbalances in iron ore, Fortescue's sole earnings and cash flow driver, will maintain pressure on prices for several years." The action follows Moody's downgrades to other major iron ore producers in the past month including Vale, Rio Tinto Group and BHP Billiton.

Lucky some of us don't take much stock in analysts like Moody's. Since their ratings Fortescue has gone up by nearly 300% and RIO Tinto and BHP have gone up by 50%. I think we are better to research company news than analysts, whom I suspect have ulterior motives.