S&P ups Quadra FNX Mining

Standard & Poor's said it raised the long-term corporate credit on Quadra FNX Mining Ltd. to BB- from B+.

The agency also said it affirmed the BB- rating on the company's senior unsecured debt and revised its recovery rating on the debt to 3 from 2.

S&P also said it removed the ratings on the company from CreditWatch, where it was placed with positive implications in March.

The outlook is stable.

The ratings were placed on CreditWatch following KGHM Polska Miedz SA's acquisition of Quadra, the agency said.

The ratings consider the company's weak business risk profile highlighted by its fourth-quartile cost profile, large growth capital expenditures, short reserve lives at some of its mines and vulnerability to volatile copper prices, the agency said.

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

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