Coeur D'Alene Mines Rtgs Lowered by S&P After Anncmnt.NEW YORK--(BUSINESS WIRE)--Oct. 14, 1997--Standard & Poor's CreditWire 10/14/97 -- Standard & Poor's today lowered its ratings on Coeur D'Alene Coeur d'Alene, city, United States Coeur d'Alene (kûrdəlān`), city (1990 pop. 24,563), seat of Kootenai co., N Idaho, near the Wash. line; inc. 1907. Mines. The company's corporate credit rating has been lowered to single-'B' from single-'B'-plus, its subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". rating to triple-'C'-plus from single-'B'-minus, and its preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. rating to triple-'C'-plus from single-'B'-minus. The ratings outlook is negative. These actions follow the company's recent announcement that it has issued $125 million in convertible subordinated debentures (today assigned a triple-'C'-plus rating), which increased debt leverage on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis to an aggressive 47% from the 37% posted as of June 30, 1997. Moreover, the company's operating results, including production levels and cash costs, have continue to lag expectations. As a result, interest coverage measures are expected to deteriorate from already weak levels. Although Coeur's cash balance will increase as a result of the offering, cash could be reduced in the near term given the current weakness in precious metals Precious Metals Valuable metals such as gold, iridium, palladium, platinum, and silver. Notes: Investing in precious metals can be done either by purchasing the physical asset, or by purchasing futures contracts for the particular metal. prices, the potential spending required to bring on-line the company's portfolio of development projects, and potential acquisitions. OUTLOOK: NEGATIVE If the recent weakness in precious metals prices persists, the company's operating performance and liquidity could deteriorate further, resulting in a rating downgrade. -- CreditWire CONTACT: Ronald A Johnson, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of 212/208-5201 For more information on criteria or subscriptions: http://www.ratings.standardpoor.com |
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