BHP Billiton Limited (ASX: BHP) has had its credit rating cut from A+ to A by ratings agency Standard and Poor's (S&P).
The iron ore miner's senior secured notes have been cut from A+ to A, and its subordinated notes from A- to BBB.
Not only that, but S&P has also placed the company on 'CreditWatch with negative implications' pending the release of BHP's first-half results for the six months to December 2015.
If that's not a sign that BHP's dividend is going to be slashed, I don't know what is. CEO Andrew McKenzie has repeatedly stated that the company's balance sheet and credit rating come first before dividends. The move by S&P is highly likely to see BHP abandon its Progressive Dividend Policy – or face further credit rating downgrades.
We'll have more to come later today…