Moody's issues warning over Atlas

MOODY’S Investors Service has placed the ratings of Atlas Iron under review due to the company’s “uncertain direction”.

Moody's issues warning over Atlas Moody's issues warning over Atlas Moody's issues warning over Atlas Moody's issues warning over Atlas Moody's issues warning over Atlas

The B3 corporate family rating and senior secured rating of Atlas was placed under review after the company announced last week that it expected to post a non-cash impairment of A$75-100 million in its 2018 financial year accounts.

The company also revised up C1 cash costs to $39-40 per wet metric tonne free-on-board (from $37-39/wmt) and full cash costs to $58-59/wmt cost and freight China (from $54-58/wmt).

Atlas revealed that with full cash costs of $62/wmt in April and an average sale price of $59/wmt, the company lost money for the month.

Moody's said its review would focus on the progress of a potential takeover by Mineral Resources, MinRes' plans regarding Atlas' debt, the impact of the transaction on Atlas' credit profile, and the deterioration of Atla...