Investing.com - Financial Markets Worldwide
💙 🔷 Not impressed by Big Tech in Q3? Explore these Blue Chip Bargains insteadExplore for free

Moody's cuts Teck Resources debt rating to junk

Published 2015-09-14, 03:48 p/m
© Reuters. Moody's cuts Teck Resources debt rating to junk
TECK
-
HG
-

Sept 14 (Reuters) - Moody's Investors Service downgraded the
rating of Teck Resources Ltd TCKb.TO to junk on Monday,
blaming weak commodity prices and heavy capital spending by the
Canadian miner.
Moody's said it was cutting Teck's senior unsecured rating
by one notch to Ba1 from Baa3. Teck's ratings outlook remains
negative, it added.
Credit downgrades typically drive up the cost of borrowing
for companies, as some big investors will only buy investment
grade bonds.
"We expect prolonged commodity price weakness and sizable
investment spending will cause Teck's financial leverage to
remain well in excess of typical investment grade thresholds
through at least 2017," Moody's said in a statement.
Prices for Teck's main commodities, coal and copper, have
fallen sharply in recent years and show few signs of a quick
turnaround.
The agency said it expects Vancouver-based Teck will burn
through C$1.5 billion ($1.13 billion) in cash in 2016 and C$1
billion in 2017 as it presses ahead with the Fort Hills oil
sands project, where it holds a minority stake.
Teck's shares were down 2 percent on the Toronto Stock
Exchange at C$8.50 after the rating cut.
($1 = 1.3263 Canadian dollars)

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.