DBRS Releases Report on Sherritt International Corporation

DBRS has today released a report on Sherritt International Corporation (Sherritt or the Company) that provides further detail on DBRS’s August 26, 2014, confirmation of the Company’s Issuer Rating and Senior Unsecured Debt rating at BB (low), both with a Negative trend and the recovery rating for Sherritt’s Senior Unsecured Debt under a hypothetical default scenario at RR4.

DBRS downgraded Sherritt’s ratings and instituted a Negative trend in May 2014 following the completion of the sale of its Coal unit. Although the sale of the Coal unit increased the short-term liquidity of the Company, it removed an important stable, low-risk portion of its business.

Going forward, Sherritt faces the challenges of bringing its important Ambatovy nickel mine to a desired stable level of near-capacity production in a period of volatile metal prices. In addition, constraints on the deployment of the proceeds from its Coal unit sale will impact the Company’s future capital structure.

Today’s report and the August 26, 2014, press release are available at www.dbrs.com or by contacting us at info@dbrs.com.