S&P: Developing watch for Quadra FNX Mining

Standard & Poor's said it placed Quadra FNX Mining Ltd.'s B+ long-term corporate credit rating on CreditWatch with developing implications.

The CreditWatch follows Quadra FNX's agreement to be acquired by KGHM Polska Miedz SA in a C$3 billion all-cash transaction, S&P said.

To resolve the CreditWatch, the agency said it will evaluate potential changes in the combined entity's business risk profile, seek clarification on its financial policies and assess any effects on the rated notes.

The acquisition could strengthen Quadra FNX's credit profile by enhancing its competitive position without an offsetting increase in financial risk, S&P said.

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