S&P: Quadra on watch positive

Standard & Poor's said it revised its CreditWatch implications on Quadra FNX to positive from developing, meaning that the agency could raise or affirm the ratings.

The agency said the CreditWatch follows the completion of the acquisition of Quadra FNX by KGHM in a C$3 billion all-cash transaction, not including Quadra FNX's $500 million senior unsecured notes.

In resolving the CreditWatch on Quadra FNX, S&P said it would assess the parent-subsidiary relationship between the company and KGHM and evaluate potential changes in financial policies.

The agency said it believes that the acquisition should strengthen Quadra FNX's credit profile, potentially by more than one notch, given S&P's expectation that the company represents a significant strategic asset for its unrated, but large and well-capitalized foreign parent.

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