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

DBRS has today finalized its rating of BBB with a Stable trend on the $1.75 billion senior unsecured notes (the New Senior Unsecured Notes) to be issued by Teck Resources Limited (Teck or the Company) and to be guaranteed by Teck’s wholly owned subsidiary Teck Metals Ltd. following the pricing of the New Senior Unsecured Notes and the filing on July 31, 2012, of a prospectus supplement to the Company’s prospectus dated July 6, 2012. The New Senior Unsecured Notes will consist of $500 million aggregate principal amount of 2.50% notes due February 1, 2018, $750 million aggregate principal amount of 3.75% notes due February 1, 2023, and $500 million aggregate principal amount of 5.40% notes due February 1, 2043. DBRS provisionally rated the New Senior Unsecured Notes at BBB with Stable trend on July 30, 2012.

The offering of the New Senior Unsecured Notes is expected to close on or about August 8, 2012, subject to customary closing conditions. Teck intends to use the approximate $1,727 million net proceeds of the New Senior Unsecured Notes, along with cash on hand, to fund the redemption or repayment of various outstanding indebtedness, with any remainder to be used for general corporate purposes.

DBRS expects that the cost to Teck to effect the transaction will have only a minor negative impact on the Company’s credit metrics.

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.