DBRS Releases Report on Noranda Operating Trust

DBRS has today released a report on Noranda Operating Trust (the Trust) that provides further detail on the recent confirmation of the Trust’s Senior Secured Notes rating at BB (high) with a Stable trend and the discontinuance of the Trust’s Issuer Rating.

The Trust remains a well-established and profitable processor of zinc concentrates strategically located to serve North American zinc metal markets, but is highly dependent on a zinc concentrate supply and processing agreement (Supply and Processing Agreement) with Xstrata Canada Corporation (Xstrata Canada) that ends its initial term in May 2017. Post-May 2017, the Trust faces a dwindling supply of zinc concentrates from North American mine operations, as well as low processing rates currently experienced in international zinc refining markets.

DBRS has also has discontinued the Issuer Rating of the Trust (an exception to our normal rating practice), as its assessment is focused heavily on income generated under the Supply and Processing Agreement through until 2017, and before which the Senior Secured notes will mature. As such, neither an Issuer rating nor Recovery rating is viewed as necessary in support of the Senior Secured note rating.

Today’s report and the September 14, 2012, press release are available at www.dbrs.com.