Moody's gives Teck Resources notes Baa3

Moody's Investors Service said it assigned a Baa3 senior unsecured rating to Teck Resources Ltd.'s proposed $750 million senior unsecured notes issuance due in seven and 30-year maturities.

Teck recently announced that it has commenced an offer to purchase for cash up to an aggregate of $600 million principal amount of its outstanding 9.75% senior secured notes due 2014 and 10.25% senior secured notes due 2016, the agency said.

According to Moody's, Teck expects to fund the repurchase of these notes from the proceeds of the offering of the new senior unsecured notes.

Moody's said it also affirmed Teck's Baa3 rating on its existing senior unsecured notes.

The outlook remains positive.

Teck's Baa3 rating reflects the company's significant business diversity and size, meaningful presence in a variety of metals and ore markets, high-quality/low cost assets primarily in politically stable regions, and excellent liquidity profile comprised of a large cash balance, substantial free cash flow generation, and committed credit facilities, the agency said.

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