Ratings agency Standard and Poor's has downgraded BHP Billiton's outlook from stable to negative on forecasts of weaker cashflows for the global miner.
But S&P reaffirmed BHP's overall credit ratings, including the A+ long-term corporate credit rating and A-1 short-term corporate credit rating.
And the agency removed BHP and fellow mining giant Rio Tinto from credit watch, where they were placed with negative implications earlier this month.
"The outlook revision reflects our concerns that continued weakness in commodity prices, combined with BHP Billiton's commitment to a progressive dividend payment, may weaken the company's key financial metrics to below our expectations for the A+ rating without offsetting measures by the company," S&P's credit analyst May Zhong said on Monday.
Ms Zhong said she believed BHP Billiton has further scope to reduce its operating costs and capital expenditure to conserve cash amid lower earnings.
Like all miners, BHP has been hit by tumbling commodity prices, particularly iron ore which has lost 60 per cent of its value over the last 12 months to be sitting at decade lows.
BHP last week actually lifted its iron ore production guidance for 2014/15 by five million tonnes to 250 million tonnes.
It said it can still get to 270 million tonnes a year using existing infrastructure, but it also shelved a major Port Hedland harbour project as a nod to weak prices.
It will this week spin off its South32 division, but that move is neutral to the Standard and Poor's rating on the miner, the ratings agency said.
Shares in BHP were 65 cents stronger at $33.15 at 1503 AEST while Rio was $1.40 higher at $59.69.
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