Moody's rates HudBay notes add-on B3

Moody's Investors Service said it assigned a B3 rating to HudBay Minerals, Inc.'s proposed offering of $100 million of senior unsecured notes due 2020, which is an add-on to its existing $650 million senior unsecured notes due 2020.

HudBay's B3 corporate family rating, B3-PD probability of default rating, B3 senior unsecured rating and SGL-4 speculative grade liquidity rating are unchanged and the outlook remains negative.

Proceeds from the notes issue will be used to help fund the company's various development projects in Canada and Peru.

The agency had contemplated HudBay's proposed debt offering in its Nov. 29 rating action when the company's long-term ratings were affirmed, its SGL rating was lowered to SGL-4 and its outlook was changed to negative.

While proceeds will provide incremental cushion against possible cost overruns, Moody's said it continues to view the company's liquidity as weak.

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