DBRS Finalizes BBB Rating with Stable Trend on New Debt Issue of Teck Resources

DBRS has today finalized its rating of BBB with Stable trend on Teck Resources Limited’s (Teck or the Company) $1 billion senior unsecured notes, consisting of $500 million aggregate principal amount of 3.00% notes due March 1, 2019, and $500 million aggregate principal amount of 5.20% notes due March 1, 2042 (collectively the New Senior Unsecured Notes), following the pricing of the notes and the filing on February 17, 2012, of a prospectus supplement to the Company’s prospectus dated June 7, 2010, related to the notes. DBRS provisionally rated the New Senior Unsecured Notes at BBB with Stable trend on February 16, 2012.

The offering of the New Senior Unsecured Notes is expected to close on or about February 28, 2012, subject to customary closing conditions. The net proceeds of the issue together with cash on hand are expected to be used by the Company to fund the redemption of all of the approximately $530 million aggregate principal amount of its outstanding 9.75% senior notes due 2014 and a portion of the approximately $1,043 million aggregate principal amount of its outstanding 10.75% senior notes due 2019.

These debt issuance and purchase transactions are expected to have only a minor impact on Teck’s credit metrics and no impact on the Company’s ratings if completed as expected.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is Rating Companies in the Mining Industry, which can be found on our website under Methodologies.