Moody's cuts Thompson Creek

Moody's Investors Service said it affirmed Thompson Creek's B3 corporate family rating and lowered its first-lien senior secured rating to B3 (LGD4, 53%) from B2.

According to the agency, the one-notch downgrade reflects a higher expected loss driven by the reduction in the amount of junior debt in the issuer's capital structure.

The B3 corporate family rating reflects its singular concentration in molybdenum, small size, concentration in two mines and reliance on fairly significant volume increases to meet its earnings and cash flow targets, Moody's said.

The B3 rating also considers favorable fundamentals of the molybdenum market, the long history of mining at Thompson Creek's two operations, significant debt reduction in 2007 and the absence of unfunded pension and other liabilities, the agency said.

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