S&P ups Hecla Mining corporate credit to B-

Standard & Poor's said it raised its corporate credit rating on Hecla Mining Co. to (B-/stable/--) from (CCC+/positive/--).

The outlook is stable.

S&P said the upgrade reflects the company's improved cost position, successful ramp up of new lower cost mines, favorable gold and silver prices and improved liquidity, which will enable the company to fund its exploration and development efforts to bolster its modest reserve base.

Ratings on Hecla reflect its very weak business position because of its limited scope of operations and reserve base, exposure to volatile gold and silver prices and uncertainties posed by its concentrated exposure to the Republic of Venezuela.

S&P said significant challenges remain as to the company's plans to enhance its limited reserve base. However, prospects are bolstered by its cash balances and favorable exploration results.

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