Moody's rates Mineral Resources notes Ba3

Moody's Investors Service said it assigned a first-time Ba3 corporate family rating to Mineral Resources Ltd.

Moody's also said it assigned a Ba3 rating to the company's proposed $750 million senior unsecured Regulation 144A notes issuance.

The outlook is stable.

The proceeds will be used to refinance the company's current credit facilities and outstanding bridge loan, the agency said.

Remaining proceeds will be used for general corporate purposes, including to fund ongoing growth spending, Moody's added.

As part of the transaction, Mineral Resources also will enter into a three-year A$250 million senior secured revolving credit facility, which will be available to support liquidity and general corporate purposes, the agency said.

The ratings reflect the company's operational diversity, which benefits from its strong position in providing mining services to high credit quality counterparties with low cost mining operations, Moody's said.

The ratings also consider an expectation that the company's iron ore operations will provide solid earnings and cash flow in the current elevated price environment, the agency said.

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