S&P: Quadra B+, notes BB-

Standard & Poor's said it assigned a B+ long-term corporate credit rating to Quadra FNX Mining Ltd., along with a its BB- rating and 2 recovery rating to its $500 million of senior unsecured notes.

A 2 recovery rating indicates 70% to 90% expected recovery in a default.

The outlook is stable.

The proceeds will be held as cash and gradually used to fund the development of the company's Sierra Gorda mining project in Chile.

The ratings reflect the company's weak business risk profile highlighted by its high cost profile, volatile copper prices, large growth capital expenditure and short reserve lives at some of its mines, the agency said.

Counterbalancing these factors is Quadra's modest debt leverage amid record high copper prices and improving operating diversity in attractive mining jurisdictions, S&P said.

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