Moody's lifts Teck Cominco view to positive

Moody's Investors Service said it confirmed Teck Cominco Ltd.'s ratings following by the expiry of Teck's bid to acquire Inco Ltd. at an acquisition price of roughly C$18.4 billion. Ratings confirmed include the Baa2 senior unsecured regular bond rating, Baa3 subordinated convertible/exchangeable bond rating and prospective Baa2 senior unsecured shelf rating.

The outlook was changed to positive from under review and reflects the agency's expectation that the market and price environment for the metal segments in which Teck participates will remain favorable over the next twelve months.

Moody's said the Baa2 rating reflects the diversification of Teck's operations across a spectrum of metals, its favorable cost position and its business footprint of owning long-lived, world-class assets.

The rating also considers the solid debt-coverage ratios and free cash-flow generating ability of the company, which Moody's expects Teck to be able to sustain, notwithstanding the company's exposure to cyclical metal prices.

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