S&P lowers Midwest Vanadium

Standard & Poor's said it lowered the long-term corporate credit and debt ratings on Midwest Vanadium Pty Ltd. to CCC+ from B-.

The outlook is negative.

The downgrade reflects a view that the company's liquidity position has deteriorated because its parent Atlantic Ltd. has decided to discontinue its share purchase plan, which could have raised up to A$10 million, S&P said.

The agency said it considers Midwest's liquidity to be less than adequate.

Pressuring its liquidity are the company's slower-than-expected generation of cash flows from vanadium and iron ore sales, S&P said, and the capital needed to undertake modification work to improve the performance of its crushing, milling and beneficiation plant.

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