S&P cuts Consolidated Minerals

Standard & Poor's said it lowered its long-term corporate credit rating on Consolidated Minerals Ltd. to B from B+. The outlook is negative.

At the same time, the agency said it lowered the issue rating on the company's outstanding $405 million senior secured notes to B from B+. The recovery rating on the notes is unchanged at 4.

The agency said the downgrade follows the sudden resignation of Consolidated Minerals' chief executive officer during an important transition year for the company as they move from a contracted to an owner-operated mining operation in Australia.

S&P said it also views the company's decision to replace the $50 million local working capital facilities in Australia with only a $20 million equipment finance facility as a negative development.

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