BHP Billiton CEO Andrew Mackenzie at the company's half-year results presentation. Photo: Pat Scala

Standard & Poor's affirmed its "A" rating on global miner BHP Billiton's debt, citing a change in the company's dividend policy.

Shares of the company were up 1.3 per cent at 725.1 pence at 1405 GMT on the London Stock Exchange.

S&P said the miner's move to link its dividends to its operating performance materially increased its financial flexibility.

The credit ratings agency cut its rating on the company to "A" from "A+" earlier this month due to the challenging commodities market, and said it could further cut the rating depending on BHP's dividend policy.

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BHP last Tuesday said it would pay out at least half of its underlying profit to its shareholders going forward, abandoning its policy of paying steady or higher dividends.

It said it would pay an interim dividend of 16 cents, down from 62 cents a year earlier.

"BHP was on notice, it needed to do something, and it did something," Investec analyst Hunter Hillcoat said, referring to the cut in dividend.

A slump in the prices of iron ore, copper, and oil have hurt the miner, which reported a half-yearly net loss of $5.67 billion last week.

"Our commitment to maintain a solid A credit rating through the cycle provides us with access to low-cost funding, financial strength and flexibility," chief financial officer Peter Beaven said in a statement on Monday.