...Teck Resources Ltd.'s rating reflects modest leverage, low country risk and strong profitability and cash flows at current commodity prices and capital spending levels. Fitch Ratings believes the hard coking coal benchmark price will revert to USD160/tonne in 2019 and USD140/tonne longer term from 2017's level of USD208/tonne. Fitch also expects zinc prices to decline to USD1.09/pound in 2019, representing a 17% decline from 2017 levels. As a result, Fitch expects annual operating EBITDA to decline from 2017 and 2018 levels to CAD4 billion per year or below. The Positive Rating Outlook reflects significant repayment of debt and improved earnings and cash flow following the recovery of commodity prices, as well as Fitch's view that leverage could be sustainably within `BBB' category levels depending on the ownership and financing of the Quebrada Blanca Phase 2 copper project (QB2) and Teck's capital allocation policy, despite a capital-intensive period and the view that coal and zinc prices...
