S&P: Thompson Creek on watch

Standard & Poor's said it placed its ratings, including its B+ long-term corporate credit rating, on Thompson Creek Metals Co. on CreditWatch with negative implications.

The agency said the CreditWatch placement follows Thompson Creek's upward revision to its capital expenditure guidance for the next two years. Assuming $15 per pound for molybdenum in 2012, S&P said it estimates that Thompson Creek would consume most of its liquidity as it builds the Mount Milligan copper-gold mine.

Moreover, S&P said it believes that if Thompson Creek fully draws its current debt facilities, debt to EBITDA would increase to beyond 4.5x, a key threshold for rating pressure.

© 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.