S&P affirms Fairmount Minerals

Standard & Poor's said it removed Fairmount Minerals Ltd. from CreditWatch with positive implications and affirmed its BB- corporate credit rating on the company.

The outlook is stable.

The affirmation reflects a view that a confluence of changing dynamics in the industry might challenge Fairmount Minerals' leading market position and profit growth over the next 18 to 24 months, S&P said.

The agency said it believes that market competition is intensifying due to an influx of new entrants and capacity expansions coming online over the next 12 months.

The combination of these factors leads to a belief that the supply/demand balance in the sand market is on the crux of a shift from chronic undersupply toward possible oversupply, S&P said.

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