S&P rates Coeur D'Alene notes B-

Standard & Poor's said it assigned a B- debt rating to the proposed $150 million senior unsecured convertible notes of Coeur D'Alene Mines Corp. (B-/stable). The notes will be issued under the company's shelf filing Dec. 27, 2005.

Proceeds will be used to fund the San Bartolome silver project in Bolivia and Palmarejo silver and gold project in Mexico.

Ratings reflect high business risk as a capital-intensive commodity-based company with a modest scope of operations, limited reserve base, and political and operating risk at some of its operations, the agency said.

Ratings also incorporate the company's aggressive expansion plans and uncertainties about successfully developing its planned lower-cost mining operations, S&P said. Meaningful challenges include volatile prices, governmental regulation, environmental issues and adverse geological conditions.

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