DBRS lowers Sherritt

DBRS said it has downgraded the issuer rating and senior unsecured debt rating of Sherritt International Corp. to BB (low) from BB (high), both with a negative trend, following the announcement that the company has completed the sale of its coal unit.

The ratings have also been removed from under review with negative implications, where they were placed on Dec. 24, 2013.

In addition, the recovery rating for Sherritt's senior unsecured debt under a hypothetical default scenario remains at RR4, the agency noted.

DBRS said that Sherritt's financial metrics have been weak in the recent environment of relatively soft nickel and cobalt prices and high debt accumulated in part to fund its share of the Ambatovy project.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.