Moody’s cuts Thompson Creek, debt

Moody's Investors Service said it downgraded Thompson Creek Metals Co. Inc.'s corporate family rating to Caa1 from B3, probability of default rating to Caa1-PD from B3-PD, senior secured rating to B1 from Ba3 and senior unsecured ratings to Caa2 from Caa1.

The speculative grade liquidity rating was affirmed at SGL-3.

The outlook was changed to negative from stable.

"The downgrade of Thompson Creek's CFR to Caa1 reflects the company's announcement that it has hired outside advisors to evaluate strategic and financial alternatives, which includes debt refinancing and restructuring, new capital transactions and asset sales," Moody's vice president and senior analyst Anna Zubets-Anderson said in a news release.

"We believe there is an increased risk that unsecured bondholders will not recover the full amount of their holdings."

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