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 downgrade of the Trust’s Issuer Rating to BB (high) with a Stable trend from BBB Under Review with Developing Implications.

The July 7, 2011, downgrade reflected among other things, the uncertainties experienced by the Trust as it continues to face delays in renewing its long-term financing structure in the light of competing interests of the unitholders of its parent, the Noranda Income Fund (the Fund), that seek restoration of the Fund’s distributions and the need to reduce long-term debt levels in advance of the potential expiry (or significant change in terms) in May 2017 of the Trust’s concentrate supply and processing agreement with Xstrata Canada that is the foundation of the Trust’s earnings and cash flow. In addition, the sensitivity of the Trust’s zinc refinery to operating levels was illustrated by the impact of a reduction in concentrate processing for about seven months in 2009, which led to a suspension of distributions by the Trust and its parent, the Fund, in July 2009.

Today’s report and the July 7, 2011, press release, are available at www.dbrs.com