Moody's may upgrade Atlas Iron

Moody's Investors Service said it placed the Caa2 corporate family rating and senior secured rating of Atlas Iron Ltd. under review for upgrade.

The rating was previously under review with direction uncertain, the agency said.

The review for upgrade follows news that Redstone Corp. Pty Ltd., a wholly owned subsidiary of Hancock Prospecting Pty Ltd. has acquired more than 90% of the total shares on issue of Atlas, enabling Redstone to commence compulsory acquisition on all of the remaining Atlas shares, Moody's said.

Redstone has advised that it intends to initiate the compulsory acquisition following its off-market takeover bid, which closed Oct. 12, the agency explained.

The review for upgrade will focus on Redstone and Hancock's strategic plans for Atlas' assets following the acquisition, along with the potential for explicit or implicit support to be provided to Atlas and plans regarding the outstanding term loan, Moody's said.

The review would also focus on Redstone and Hancock's overall credit quality and its ability and willingness to provide support to Atlas' credit profile, the agency said.

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