12 January, 2017 S&P upgrades Atlas credit rating to "B-" Highlights
  • S&P has announced the upgrade of the Atlas corporate and senior secured ratings to "B-" from "CCC"

Atlas Iron Limited (ASX: AGO) is pleased to advise that Standard & Poors Ratings Services (S&P) has upgraded its corporate and senior secured credit ratings on Atlas to "B-" from "CCC".

S&P last upgraded Atlas Iron Limited's ratings in July 2016 following completion of its debt restructure.

Extract from S&P Global ratings upgrade dated January 12, 2017

"Atlas Iron has recently announced that it has prepaid A$54 million of its debt, reducing its U.S. term loan debt to A$118 million, from A$180 million in May 2016.

Benefiting from higher iron ore prices, the company generated strong cash flows during the December quarter, enabling it to reduce its term loan. As such, we are raising our ratings on Atlas Iron and the company's secured debt to 'B-', from 'CCC'.

The outlook is stable, reflecting our expectation that Atlas Iron will maintain adequate liquidity and steady performance."

Investor Enquiries: Atlas Iron Limited

Tony Walsh,

Company Secretary +61 8 6228 8000

Media Enquiries:

Read Corporate +61 8 9388 1474

Paul Armstrong +61 421 619 084

S&P Global Ratings definitions

Category

Definition

BB; B; CCC;

CC; and C

Obligations rated 'BB', 'B', 'CCC', 'CC', and 'C' are regarded as having significant speculative characteristics. 'BB' indicates the least degree of speculation and 'C' the highest. While such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or major exposures to adverse conditions.

BB

An obligation rated 'BB' is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation.

B

An obligation rated 'B' is more vulnerable to nonpayment than obligations rated 'BB', but the obligor currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial, or economic conditions will likely impair the obligor's capacity or willingness to meet its financial commitment on the obligation.

CCC An obligation rated 'CCC' is currently vulnerable to nonpayment, and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation. In the event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation.

Important Notice

This ASX Announcement does not constitute an offer to acquire or sell or a solicitation of an offer to sell or purchase any securities in any jurisdiction. In particular, this ASX Announcement does not constitute an offer, solicitation or sale to any U.S. person or in the United States or any state or jurisdiction in which such an offer, tender offer, solicitation or sale would be unlawful. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), and neither such securities nor any interest or participation therein may not be offered, or sold, pledged or otherwise transferred, directly or indirectly, in the United States or to any U.S. person absent registration or an available exemption from, or a transaction not subject to, registration under the United States Securities Act of 1933.

2

Atlas Iron Limited published this content on 12 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 12 January 2017 05:08:04 UTC.

Original documenthttp://www.atlasiron.com.au/irm/PDF/7984_0/SPupgradesAtlascreditratingtoB

Public permalinkhttp://www.publicnow.com/view/BF07C348B9FA8B9BC47EACA4DCEF093C03A89BB1