S&P: Mirabela Nickel, bond B-

Standard & Poor's said it assigned a B- corporate credit rating to Mirabela Nickel Ltd., along with a B- rating and a recovery rating of 4 on its proposed $375 million bond issue.

The 4 recovery rating indicates 30% to 50% expected recovery in a default.

The outlook is positive.

The rating reflects Mirabela's lack of geographic and revenue diversity, which stems from the operation of a single site in Brazil that is almost exclusively focused on the extraction of nickel, a product that has historically experienced high price volatility, S&P said.

But the agency the combination of its performance in the ramp-up of operations, along with its adequate liquidity and the experience of the management team will partially offset those weaknesses.

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