S&P ups Coeur d'Alene Mines

Standard & Poor's said it raised its corporate credit and senior unsecured debt ratings on Coeur d'Alene Mines Corp. to B- from CCC and the company's convertible unsecured notes to B- from CCC.

The outlook is stable.

S&P said the ratings upgrade reflects the improvement in industry conditions and in the company's liquidity and financial profile, which have provided Coeur with the capital necessary to fund development of its low-cost mining projects so that it can increase its limited reserve base and improve profitability and diversity.

S&P noted the ratings on Coeur reflect its high business risk as a cyclical, capital-intensive commodity-based company with a modest scope of operations, limited reserve base (averaging about 3.5 years) and its very weak financial performance.

Ratings also incorporate the challenges and uncertainties regarding the company's ability to successfully develop new lower-cost mining operations. Challenges include volatile prices, governmental regulation, environmental issues, permitting, and adverse geological conditions. These factors are somewhat mitigated by Coeur's good liquidity.

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