Saturday, April 17, 2010

Teck Resources (NYSE:TCK) Upgraded by Standard & Poor's Ratings Services

The long term corporate credit rating of Teck Resources (TSE:TCK-B) got a boost as Standard & Poor's Ratings Services increased their investment grade rating from BB+ to BBB.

S&P analyst Maude Tremblay gave this as the reason: "We base our upgrade on our view that, following the recent debt reduction initiatives, Teck has improved its financial risk profile to a level commensurate with an investment-grade rating and that its better-than-average cost profile will enable it to maintain intermediate credit metrics in the medium term, using our credit neutral price assumptions for base metals."

This will help Tech Resources in costs, as it should lowering borrowing rates, which will help them as long as they maintain the rating.

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