S&P rates Fairmount Minerals loan BB

Standard & Poor's said it assigned a BB- corporate credit rating to Fairmount Minerals Ltd., along with the BB rating, one notch above the corporate credit rating, and 2 recovery rating on the company's $775 million senior secured credit facility. The 2 recovery rating indicates an expectation of 70% to 90% recovery in a default.

The facility consists of a $75 million senior secured revolving credit facility due 2015, a $150 million senior secured term loan due 2015 and a $550 million senior secured term loan due 2016.

The outlook is stable.

The ratings reflect the combination of Fairmount's fair business risk profile and aggressive financial risk profile as indicated by its modest size and scope, exposure to cyclical end markets, significant customer concentration and relatively aggressive capital structure, S&P said.

The company's relatively good margins and good competitive position partially offset these negative factors, the agency said.

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