S&P: Iberian Minerals notes B+

Standard & Poor's said it assigned a B+ preliminary long-term corporate credit rating to Iberian Minerals Corp.

The agency also assigned a preliminary issue rating of B+ and a preliminary recovery rating of 3 to the proposed $200 million senior secured notes to be issued by Iberian Minerals Financing SA, a fully owned subsidiary of Iberian Minerals.

The outlook is stable.

The ratings reflect Iberian's weak business risk profile due to the cyclical and capital intensive nature of the mining industry, S&P said, and aggressive financial risk profile.

Key risks are operating challenges related to underground mining, the limited scope of operations and narrow product diversification, the agency said.

The ratings are supported by its modest geographic diversification of assets and overall perceived moderate country risks, S&P said.

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