Moody’s lowers Barminco, debt

Moody's Investors Service said it downgraded the corporate family rating of Barminco Holdings Pty Ltd. to B2 from B1.

At the same time, the agency downgraded Barminco’s senior unsecured rating to B2 from B1 and senior secured rating to B1 from Ba3.

The outlook is negative.

Moody’s said the downgrade follow the company's announcement that the Mt. Lyell mine in Tasmania will be placed on care and maintenance indefinitely due to the discovery of a rock fall in the mine's ventilation shaft.

"Our base case expectation included the resumption of Mt. Lyell mine since the suspension of mining operations in January 2014," Moody's analyst Saranga Ranasinghe said in a news release, adding, "As a result, Barminco's earnings will likely be around 15% lower than our previous expectation."

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