S&P puts Coeur d'Alene Mines on watch

Standard & Poor's said it placed its ratings, including the B- corporate credit rating, on Coeur d'Alene Mines Corp. on CreditWatch with negative implications.

The CreditWatch placement reflects S&P's prediction that Coeur d'Alene Mines' currently strained liquidity position will worsen dramatically over the next few quarters, creating a significant funding gap beginning in the first quarter of 2009 as the company continues to spend aggressively on the development of its new San Bartolome and Palmarejo mines and resulting in a near-term decrease in cash balances.

In addition, the company's stock is in danger of being delisted by the New York Stock Exchange as a result of the significant decline in its equity price, which would be an event of default under its $50 million senior secured notes due 2012, the agency added.

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