Moody's cuts New Reclamation

Moody's Investors Service said it has downgraded the New Reclamation Group (Pty) Ltd.'s corporate family rating and probability of default rating to Caa1 from B3.

Moody's said it also lowered the rating on the €253 million senior secured notes due 2013 to Caa1 from B3.

The outlook remains negative.

The action reflects Moody's view that the current trading prospects and economic environment in the metals industry will continue to adversely affect EBITDA levels and free cash flow generation, resulting in accelerated cash burn and liquidity levels that could become insufficient to meet future debt service obligations.

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