S&P could cut Iamgold

Standard & Poor's said it placed its ratings on Iamgold Corp., including its BB- long-term corporate credit rating on the company, on CreditWatch with negative implications.

The placement follows Iamgold's announced plan to sell its wholly owned Niobec Inc. subsidiary, which owns and operates a niobium mine in Quebec.

The company will receive $500 million in cash, with an additional $30 million when the rare earth element deposit adjacent to the niobium mine goes into commercial production.

"The CreditWatch follows the company's announced intention to sell its Niobec niobium mine, which is a stable and meaningful contributor to Iamgold's operating results," S&P credit analyst Jarrett Bilous said in a news release.

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