From Moody’s report on Australia title: “Declining Capex Is Credit Positive for Australian Miners, but Negative for Mining Services”.

  • expects private-sector capital expenditure in Australia to decline over the next 12 to 18 months with varying effects on individual sectors
  • “The bulk of the contraction will come from the mining sector, and this will be credit positive for miners, but negative for companies driven by capital spending”
  • “Accordingly, companies that rely heavily on the resources sector for business, such as mining services companies and building contractors, will see the biggest squeeze on revenues and margins”

Also:

  • Building contractors will also be negatively impacted by the capex tightening