| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers A > Headlines for Atlas Iron Ltd. > News item |
S&P downgrades Atlas Iron
S&P said it lowered its long-term issuer credit rating on Atlas Iron Ltd. to CCC from B- and the issue-level rating on its term loan B to CCC and retained the recovery rating of 3.
The agency also placed the ratings on CreditWatch with developing implications. S&P previously placed the ratings on CreditWatch with positive implications.
The agency said the downgrade reflects a view that Atlas could face a liquidity crisis or breach its term loan B covenant trigger within the next 12 months, in absence of other cash generative options the company is investigating.
“Atlas Iron's underlying business and creditworthiness continues to weaken due to higher iron ore grade discounts and higher all-in-cash costs,” S&P said in a news release.
“As a result, Atlas Iron's cash flows from operations are negative, which is likely to deteriorate the company's cash position.”
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.