Moody's lowers Mirabela to B3

Moody's Investors Service said it downgraded the corporate family and senior unsecured ratings of Mirabela Nickel Ltd. to B3 from B2.

The ratings are under review for further downgrade.

"The ratings downgrade reflects continued concerns around Mirabela's very high cash costs of production, which combined with lower than expected nickel prices have led to negative operating cash flow for the company, particularly in the fourth quarter of 2011," Moody's assistant vice president and analyst Matthew Moore said in a news release.

Accordingly, Mirabela's credit profile worsened to a level that is considerably weaker than what was incorporated at the previous rating, the agency said.

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