Moody's downgrades Mongolian Mining to B2; outlook stable
[ET Net News Agency, 28 February 2013] Moody's Investors Servicehas downgraded the corporate family and senior unsecured bond ratings of Mongolian Mining Corporation (MMC)(00975) to B2 from B1. The ratings outlook is stable.
This concluded the rating review for downgrade initiated on 24 January 2013.
"The downgrade reflects the weakened financial profile of MMCand Moody's expectation that its credit metrics are unlikely to improve materially over the next 12-18 months to a level that is appropriate for a B1 rating, as a result of the prolonged weakness in coking coal prices," said Simon Wong, a Moody's Vice President and Senior Analyst.
"Coking coal prices have firmed recently, largely due to restocking demand, but there is still some uncertainty over whether prices will continue to rise for the remainder of this year. Moody'sexpects prices to average $165-$175 per ton for the next 12 to 18 months due to the moderation in the growth in demand for steel and the ample level of coking coal supplies", he added.
This concluded the rating review for downgrade initiated on 24 January 2013.
"The downgrade reflects the weakened financial profile of MMCand Moody's expectation that its credit metrics are unlikely to improve materially over the next 12-18 months to a level that is appropriate for a B1 rating, as a result of the prolonged weakness in coking coal prices," said Simon Wong, a Moody's Vice President and Senior Analyst.
"Coking coal prices have firmed recently, largely due to restocking demand, but there is still some uncertainty over whether prices will continue to rise for the remainder of this year. Moody'sexpects prices to average $165-$175 per ton for the next 12 to 18 months due to the moderation in the growth in demand for steel and the ample level of coking coal supplies", he added.
Comments
Post a Comment