Mirabela Nickel Limited - Debt rating lowered by S&P

PERTH, Australia, Nov. 18, 2013 /CNW/ - Mirabela Nickel Limited (Mirabela or 
the Company) (ASX: MBN) wishes to advise that Standard and Poor's Ratings 
Services (S&P) lowered the Company's corporate credit rating from 'SD' to 'D'. 
The Company provides the attached Press Release from S&P. 
Mirabela Nickel Ltd. Downgraded To 'D' After Standstill Agreements 
MELBOURNE (Standard & Poor's) Nov. 15, 2013—Standard & Poor's Ratings 
Services said today that it has lowered its corporate credit rating on 
Australian nickel mining company Mirabela Nickel Ltd. to 'D' from 'SD'. The 
issue rating on the company's US$395 million 8.75% notes remains at 'D', and 
the recovery rating of '4' remains unchanged. 
"Today's lowering to 'D' follows Mirabela's announcement that it had entered 
into standstill agreements with its key creditors that have financing 
facilities with the company for about US$454 million," Standard & Poor's 
credit analyst Thomas Jacquot said. "During the 60-day standstill period, 
Mirabela will not make any payment of interest or principal under its existing 
debt other than as specified." 
This downgrade follows our previous lowering of the rating on Mirabela to 'SD' 
on Oct. 23, 2013, after the company had failed to pay its scheduled interest 
in that month under its US$395 million notes. Following the missed interest 
payment, the company had a 30-day grace period that ended yesterday under its 
notes indenture, to remedy the nonpayment. 
Mirabela's main creditors - comprising representatives of the noteholders, 
Banco Bradesco S.A., and Caterpillar Financial Services Corp. - have agreed 
not to enforce any rights they currently have for a period of up to 60 days. 
During the standstill period, Mirabela intends to restructure its debt, 
combined with a recapitalization. 
"In our view, it is highly likely that the debt restructuring would be in the 
form of a distressed exchange because we believe the company would likely run 
out of cash by early 2014," said Mr. Jacquot. "During the third quarter of 
2013, the company's cash balance reduced by about US$30 million. If the 
company were to use its cash at a similar rate in the fourth quarter, and 
given the amounts outstanding under the notes together with a principal 
payment in January 2014, its cash reserves would likely be depleted by early 

    --  General Criteria: Timeliness of Payments: Grace Periods,
        Guarantees, And Use Of 'D' And 'SD' Ratings, Oct. 24, 2013
    --  2008 Corporate Criteria: Analytical Methodology, April 15, 2008


Media Contact: Richard Noonan; richard.noonan@standardandpoors.com; 613 9631 

Credit analysts: Thomas Jacquot, thomas.jacquot@standardandpoors.com May 
Zhong, may.zhong@standardandpoors.com

Standard & Poor's Ratings Services, part of McGraw-Hill Financial (NYSE:MHFI), 
is the world's leading provider of independent credit risk research and 
benchmarks. We publish more than a million credit ratings on debt issued by 
sovereign, municipal, corporate and financial sector entities. With over 1,400 
credit analysts in 23 countries, and more than 150 years' experience of 
assessing credit risk, we offer a unique combination of global coverage and 
local insight. Our research and opinions about relative credit risk provide 
market participants with information and independent benchmarks that help to 
support the growth of transparent, liquid debt markets worldwide.

Standard & Poor's (Australia) Pty. Ltd. holds Australian financial services 
licence number 337565 under the Corporations Act 2001. Standard & Poor's 
credit ratings and related research are not intended for and must not be 
distributed to any person in Australia other than a wholesale client (as 
defined in Chapter 7 of the Corporations Act).

SOURCE  Mirabela Nickel Ltd. 
CONTACT DETAILS Mirabela Nickel Limited Telephone: +61 8 9324 1177 
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