Moody's downgrades HudBay Minerals
Still holding on for the improvements that will come!
HudBay Minerals Inc (C:HBM)
Shares Issued 172,028,376
Last Close 6/5/2013 $8.31
Thursday June 06 2013 - In the News
The Financial Post reports in its Thursday, June 6, edition that there have been rumblings from analysts for months that HudBay Minerals ($8.31 (Canadian)) may need to raise fresh capital next year. The Post's Peter Koven writes that Moody's Investors Service downgraded HudBay's credit rating to B3 from B2 on Wednesday, saying it expects HudBay will require an additional $400-million (U.S.) to complete construction of the Constancia and Lalor mines. At least part of that amount is expected to be funded with debt. "In addition, weaker-than-expected metal prices have reduced HudBay's earnings and weakened its liquidity compared to previous expectations," the credit rating agency said in a note. HudBay has sufficient liquidity to fund its growth plans over the next year, Moody's said. However, the company's "liquidity capacity to absorb unforeseen adverse events" is minimal. Moody's maintained a stable outlook on HudBay's credit. It noted the company's credit metrics should remain weak through 2014 before improving significantly in 2015 when Constancia and Lalor are expected to reach full production. The credit downgrade affects about $500-million (U.S.) of debt.