S&P: Thompson Creek notes B

Standard & Poor's said it affirmed the ratings, including the B+ long-term corporate credit rating, on Thompson Creek Metals Co.

The outlook is stable.

S&P assigned a B issue-level rating and a 5 recovery rating to the company's proposed $300 million of senior notes. The 5 recovery rating indicates modest (10%-30%) recovery in the event of default.

The ratings on Thompson Creek reflect the company's weak business risk profile, highlighted by its reliance on volatile molybdenum prices during a phase of large capital expenditures, limited operating diversity and the capital intensity of its operations, the agency said.

Partially offsetting these factors are the company's relatively attractive cost profile and long reserve lives at its two operating mines, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.