Drummond Co. Inc. Rating Raised To 'BB' From 'BB-' On Improved Liquidity; Outlook Stable Nov 11
Standard & Poors, November 2011
Abstract
Drummond Co. Inc. recently finalized a partnership agreement with ITOCHU Corp., whereby ITOCHU now owns a 20% interest in Drummond's Colombian operations. Drummond used part of the approximately $1.6 billion in proceeds to repay all of its outstanding book debt and boost its liquidity profile. We expect operating performance to improve in 2012 due to higher contracted sales prices and likely increased tonnage as a result of better end-market demand. We are raising the corporate credit rating on Drummond to 'BB' from 'BB-' and removing all ratings from CreditWatch. At the same time, we are withdrawing all issue-level ratings. The stable rating outlook reflects our expectation Drummond will maintain credit measures at a level we would consider good for the...
Companies mentioned in this report are: Drummond Co. Inc.
Action: Outlook: Stable
Action: Removed From CreditWatch
Action: Upgraded
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
Drummond Co. Inc.
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