Just saw Moody's lowering rating from A3 to Baa1. Seems now time for a change in strategy for the Board.
Rather than pursue the fire sale of assets, it would make sense to spin out the offending pieces and go separately to the market and float.
Yes it is risky but consider this.
1. The US fed has placed more cash into the economy for which the rest of the world will follow suit. This means also that investors will be looking for the long road recovery.
2. By being frank and honest about the quality of the assets and how they should not be fire saled but reorganised independently to come out of the storm you will attract investors to a 5 year plan.
3. No sale means BHP and others cannot pick at the assets which may be part of the competition in the future.
4. Spinout and successful float = removal of debt, retaining assets and higher share price for current investors and needless to say higher rating from Moody's.
I welcome the company's comments.