Fitch rates Mineral Resources notes BB

Fitch Ratings said it assigned a first-time long-term foreign-currency issuer default rating of BB to Mineral Resources Ltd.

The outlook is stable.

Fitch also said it assigned an expected BB rating the company's proposed dollar-denominated senior unsecured notes.

The proposed notes are rated at the same level as the issuer default rating as they will be unconditionally, jointly and severally guaranteed by the company and its subsidiaries, Fitch explained.

The agency said it does not believe the capital structure, which contains secured debt, impairs Mineral Resources' senior unsecured creditors, the agency added.

The ratings reflect the company's strong business profile, which is supported by its stable cash flow base, Fitch said.

But the company's operating risk profile will be elevated over the next four years as it invests in a new hydroxide plant to move up the lithium value chain, which constrains its credit profile, the agency said.

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