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S&P has upgraded Glencore’s credit rating, in a further vindication of the miner’s efforts to slash debts and return to profit.

Just over a year after the ratings agency downgraded Glencore’s debt to one notch above junk, S&P has boosted the company’s rating to BBB/A-2.

It also left a positive outlook on the rating, indicating that the miner and commodity trader could be upgraded further “in the next year or so”.

Last month Glencore reported that it was in its best financial position ever after swinging back to profit in 2016.

Glencore was hit hard by the collapse in commodity prices, but S&P said its recent debt reduction measures have given it “increased financial resilience to future industry downturns”.

Shares in the company have increased 249 per cent since S&P’s downgrade last year.

However, despite the improvements, the ratings agency is still not encouraging chief executive Ivan Glasenberg to return to his past acquisitiveness, warning that a major deal “without comparable offsetting disposals” could prompt it to revise its outlook to stable.

It added that “a prolonged fall in commodity prices, notably if economic developments in China worsened”, could also put a dampener on its positive outlook.

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