Baffinland Iron Mines Corp. Outlook Revised To Negative From Stable On Delayed Expansion; Ratings Affirmed

Baffinland Iron Mines Corp.'s Phase 3 expansion project has been postponed due to delays in obtaining permits. We believe Baffinland faces increased risk of liquidity materially weakening beyond our expectations, given limited visibility on the company's cash flow at least over the next 12 months. As a result, S&P Global Ratings revised its outlook on Baffinland to negative from stable, and affirmed its 'B-' issuer credit rating (ICR) on the company and its 'B-' issue-level rating on Baffinland's senior unsecured notes. The outlook revision reflects the increased potential for a downgrade within the next 12 months if we expect Baffinland's liquidity position to materially deteriorate to an extent that we would no longer view the company's capital structure as sustainable.

...February 21, 2020 - Baffinland Iron Mines Corp.'s Phase 3 expansion project has been postponed due to delays in obtaining permits. - We believe Baffinland faces increased risk of liquidity materially weakening beyond our expectations, given limited visibility on the company's cash flow at least over the next 12 months. - As a result, S&P Global Ratings revised its outlook on Baffinland to negative from stable, and affirmed its 'B-' issuer credit rating (ICR) on the company and its 'B-' issue-level rating on Baffinland's senior unsecured notes. - The outlook revision reflects the increased potential for a downgrade within the next 12 months if we expect Baffinland's liquidity position to materially deteriorate to an extent that we would no longer view the company's capital structure as sustainable. TORONTO (S&P Global Ratings) Feb. 21, 2020--S&P Global Ratings today took the rating actions listed above. The outlook revision follows a delay in receiving permits for the company's Phase 3 rail...

Ratings Action