S&P lifts Mirabela Nickel view to stable

Standard & Poor's said it revised the outlook on Mirabela Nickel Ltd. to stable from negative.

The agency also affirmed its CCC+ issuer credit rating and the CCC+ rating on its $395 million bonds due 2018 with recovery rating of 4.

The outlook revision reflects a view that Mirabela has removed potentially high liquidity pressure in early 2013 with its $120 million equity raising in June 2012 and recent improvements in key operating ratios, S&P said.

The company has to repay $25 million of its working capital facility in early next year, the agency said.

Although the immediate risks have been removed, the company's current cash costs constrain the ratings and will cause its cash flow deficits to continue in the short term, S&P said.

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