S&P affirms Orica

Standard & Poor's said its BBB+/A-2 corporate credit ratings on Orica Ltd. were affirmed following Orica's announcement that it has signed an agreement to acquire Excel Mining Systems LLC (not rated) for about $670 million.

The outlook is stable.

The combination of Excel Mining's bolt products and Minova Mining Services' resin products, acquired by Orica in October 2006, provides a highly complementary product mix to end customers, the agency said.

"Although the Excel Mining business operates solely in the U.S., Excel Mining and Minova have strong links with some similar customers and geographical overlap," S&P credit analyst Peter Stephens said.

"This overlap and combination will provide Orica some synergy benefits in the U.S. and a platform for growth into Minova's non-U.S. markets."

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