S&P cuts Teck Cominco outlook to negative

Standard & Poor's said it revised its outlook on Teck Cominco Ltd. to negative from stable after the company announced its $12.4 billion acquisition of the 60% of the Elk Valley Coal Partnership it does not already own from Fording Coal Trust.

At the same time, the agency said it affirmed the ratings, including the BBB long-term corporate credit and unsecured debt ratings on the company and subsidiary Teck Cominco Metals Ltd.

Should the terms of the transaction change materially for whatever reason, including a competing bid, S&P added that it could place the ratings on CreditWatch with negative implications.

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