S&P lowers Thompson Creek, rates notes CCC+

Standard & Poor's said it lowered its long-term corporate credit rating on Thompson Creek Metals Co. to B- from B+.

At the same time, the agency said it removed all ratings on the company from CreditWatch, where they had been placed with negative implications on March 6. The outlook is negative.

S&P said it also lowered its issue-level rating on the company's senior secured credit facility to B+ from BB. The recovery rating is unchanged at 1. In addition, the agency said it lowered its issue-level rating on the company's senior unsecured debt to CCC+ from B. The 5 recovery rating is unchanged.

Finally, the agency said it assigned its CCC+ issue-level rating and 5 recovery rating to Thompson Creek's proposed $200 million senior unsecured note offering.

"We base the downgrade on Thompson Creek on this notes issuance and what we view as the adverse impact of capital spending inflation and lower molybdenum prices on the company's financial risk profile, which we now view as highly leveraged," said S&P credit analyst Donald Marleau in a news release.

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