Hecla Mining Co (HL)

[eik]

From today's news on ETrade:
S&PGR Lowers Hecla ICR To 'B-' From 'B+'; Outlook Negative

The following is a press release from S&P Global Ratings:

-- Silver and gold producer Hecla Mining Co. is scaling back development

at its Nevada operations, acquired in 2018, following lower than expected

production there stemming from operational problems and high costs.

-- We are now forecasting 2019 year-end adjusted leverage of about 5x, up

from our previous expectation closer to 2.5x.

-- As a result, we have lowered our issuer credit rating on Hecla to 'B-'

from 'B+', and our issue-level ratings on Hecla's $500 million senior notes,

due in May 2021, to 'B-' from 'B+'.

-- We also revised Hecla's liquidity assessment to less than adequate,

from adequate, reflecting increased refinancing risk as its debt maturities

approach and the company generates less cash flow than we had expected.

-- The negative outlook reflects our view that leverage will improve but

remain close to 5x over the next year, which could make it difficult for Hecla

to refinance its $500 million of senior notes.