Moody's rates Midwest Vanadium notes B3

Moody's Investors Service said it assigned a provisional B3 corporate family rating to Midwest Vanadium Pty Ltd. and a provisional B3 senior secured rating to the proposed $335 million 144A senior secured notes issuance.

The outlook is stable.

Proceeds will be mainly used in connection with the completion of the MVPL's Windimurra vanadium project and to refinance existing debt.

The B3 ratings largely reflect the remaining construction risk and overall execution risk of the project, the company's reliance on a single asset for all earnings and cash flow, the inherent volatility in ferrovanadium prices and exposure to the highly cyclical steel industry, according to the agency.

The rating benefits from meaningful liquidity at the project level, the agency noted.

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