S&P: Erdenet on positive watch

Standard & Poor's said it placed its B long-term corporate credit rating on Erdenet Mining Corp. on CreditWatch with positive implications because of the likelihood of a substantial improvement in the company's financial performance and credit profile under favorable operating conditions.

S&P said it will study the latest financial information and other relevant information made available to it before determining the outcome of the CreditWatch placement within the next three months.

Erdenet Mining is likely to continue to benefit from strong copper prices, although the quality of its ore has been deteriorating gradually in recent years, the agency noted, adding that the company plans additional capital expenditure to upgrade its production facilities and improve its operating efficiency to offset the impact of the deteriorating ore grade.

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