Fitch downgrades Solway, puts on negative watch

Fitch Ratings said it downgraded Solway Investment Group Ltd.'s long-term foreign-currency issuer default rating to B- from B and placed it on Rating Watch negative.

The group's short-term issuer default rating of B also was placed on negative watch.

The downgrade reflects a material re-basing of expected results for the next three to four years, stemming from a combination of delays at key development projects, a potential curtailment of production at a plant and nickel prices below the agency's price deck, Fitch said.

Fitch said it now expects fiscal year 2014 revenues of about $450 million compared with previous expectations in excess of $900 million.

The negative watch reflects liquidity concerns in the coming six- to 12-months, the agency added.

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