Rating agency Moody’s has voiced concerns over the high executive turnover rate at Fortescue Metals, suggesting this could negatively impact the iron ore producer’s credit rating.
In a recent update, Moody’s reaffirmed the rating of Australia’s third-largest iron ore producer as BA1.
However, they highlighted governance risks within the company, focusing on the swift departures of senior executives.
The agency also pointed out governance risks arising from the company’s board structure and the substantial ownership held by its chairman, Andrew Forrest, who possesses about 37 per cent of the company.
Moody’s anticipates Fortescue will continue to post strong earnings and cash flow, supporting its growth initiatives.