Moody's slashes Tacora Resources

Moody's Investors Service said it downgraded Tacora Resources Inc.'s corporate family rating to Caa3 from B3, its probability of default rating to Caa3-PD from B2-PD and its senior secured notes rating to Caa3 from B3.

"The downgrade of Tacora's ratings reflects the company's stressed liquidity position and continued cash burn because of lower iron ore prices and its inability to increase production," said Jamie Koutsoukis, a Moody's analyst, in a statement.

In its most recent financials, Tacora warned that based on its projected cash flows, it does not have enough cash on hand or available liquidity to sustain its operations and meet its obligations as they become due for 12 months following the date the third quarter consolidated financial statements were issued (January 2023). It also reported substantial doubt about continuing as a going concern.

The outlook remains negative.

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