DBRS rates Teck notes BBB

DBRS said it assigned a provisional BBB rating with a stable trend to the senior notes to be issued by Teck Resources Ltd. and guaranteed by subsidiary Teck Metals Ltd. The proceeds and cash on hand will be used to fund the redemption or repayment of various outstanding debt issues and for general corporate purposes.

The agency said it views this transaction as a normal financing transaction intended to lower the interest rate of the company's outstanding debt obligations, to manage the maturity profile of Teck's debt and to extend the average term of financing in place. Teck's cost to effect the transaction is expected to have only a minor negative impact on the company's credit metrics, DBRS said.

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