Moody's: Thompson Creek notes Caa2

Moody's Investors Service said it downgraded Thompson Creek Metals Co. Inc.'s corporate family rating and probability of default rating to Caa1 from B3, assigned a Caa2 rating to the proposed new $200 million senior unsecured notes due 2019 and affirmed Caa2 ratings on the existing senior unsecured debt as well as the provisional Caa2 rating for unsecured debt issued under the company's shelf registrations.

A Caa2 rating was also assigned to the company's proposed debt component of the tangible common equity units (tMEDs).

In addition, Moody's affirmed the speculative grade liquidity rating of SGL-4.

The outlook is stable.

Moody's said that over the intermediate term, the ratings reflect its expectation that the company's leverage, excluding the equity component of tMEDs, will be in 7x to 10x range in 2012, and in 4x to 7x range by the end of 2013, depending when Mt. Milligan production comes on line.

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