Fitch downgrades Teck to B+

Fitch Ratings said it downgraded the issuer default rating for Teck Resources Ltd. to B+ from BB+ along with Teck's outstanding debt.

About C$9.6 billion in debt and $4.2 billion in senior unsecured credit facilities are affected by these actions.

Fitch said the downgrade reflects the risk that metal and metallurgical coal prices will be lower for longer resulting in weak earnings which, coupled with high capital spending for the Fort Hills project, will delay Teck's ability to generate free cash flow and reduce financial leverage to levels where FFO leverage is less than 4.25 times beyond 2018, as well as liquidity risks around refinancing upcoming maturities as well as the 2017 credit facility.

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