Metals Prices to Remain Strong This Year but Risks Will Strain Mining Credit Ratings

Source: Mineweb.com  (9/28/07)

Among the medium-term risks are a sudden change in Chinese demand, a significant increase in company costs because of higher energy prices, higher currencies against the dollar, and a general slowing of the U.S. economy, according to S&P.


While Standard & Poor's anticipates that strong metals prices will continue for the rest of this year, individual mining company risks will strain their credit ratings.

Among the medium-term risks are a sudden change in Chinese demand, a significant increase in company costs because of higher energy prices, higher currencies against the dollar, and a general slowing of the U.S. economy, according to S&P.

Of the 50 U.S. mining and metals companies rated by S&P, 32 or 64% have stable outlooks; 11 have negative outlooks or are on CreditWatch with negative implications; six have positive outlooks or are on CreditWatch with positive implications; and one has a developing outlook.

Related Articles

The Gold Report The Gold Report