S&PBulletin: Mongolian Mining Rtgs Unaffected By Notes Upsize
(The following was released by the rating agency) SINGAPORE (Standard & Poor's) March 23, 2012--Standard & Poor's Ratings Services said today that its corporate credit rating on Mongolia-based coking coal producer Mongolian Mining Corp. (MMC; B+/Stable/--) and its rating on MMC's senior notes maturing 2017 are unaffected by the company's decision to increase its issuance to US$600 million.
We estimate that MMC's ratio of total debt to EBITDA would increase to 2.9x, from 2.6x based on our original issue size assumption. At the same time, its ratio of funds from operations (FFO) to total debt would decline to about 24% in 2012 with a US$600 million notes issue size. These ratios remain within the ranges of 2.5x-3.5x for total debt to EBITDA and 25%-35% for FFO to total debt that we expected for 2012 and 2013, and are commensurate with our 'B+' corporate credit rating on MMC. In our base-case scenario, we originally considered ratios of total debt to EBITDA of 2.6x and FFO to total debt of 28%.
We estimate that MMC's ratio of total debt to EBITDA would increase to 2.9x, from 2.6x based on our original issue size assumption. At the same time, its ratio of funds from operations (FFO) to total debt would decline to about 24% in 2012 with a US$600 million notes issue size. These ratios remain within the ranges of 2.5x-3.5x for total debt to EBITDA and 25%-35% for FFO to total debt that we expected for 2012 and 2013, and are commensurate with our 'B+' corporate credit rating on MMC. In our base-case scenario, we originally considered ratios of total debt to EBITDA of 2.6x and FFO to total debt of 28%.
Comments
Post a Comment