Moody's cuts Taseko

Moody's Investors Service said it downgraded Taseko Mines Ltd.'s corporate family rating to Caa1 from B3, probability of default rating to Caa1-PD from B3-PD, senior secured note ratings to Caa1 from B3 and speculative grade liquidity rating to SGL-4 from SGL-3. The outlook was changed to negative from stable.

"The downgrade of Taseko's rating is driven by the company's high leverage and Moody's expectation of continued weakness in copper prices," said Jamie Koutsoukis, a Moody's vice-president, senior analyst, in a press release.

The rapid and widening spread of the coronavirus outbreak, deteriorating global economic outlook, falling oil prices, and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets. The combined credit effects of these developments are unprecedented.

The mining sector has been one of the sectors affected by the shock. More specifically, the weaknesses in Taseko's credit profile, including its exposure to copper prices, has left it vulnerable to shifts in market sentiment in these unprecedented operating conditions.

© 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.