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Gold/Mining/Energy : Royal Oak-RYO -- Ignore unavailable to you. Want to Upgrade?

To: Bill Jackson who wrote (754)	3/18/1998 11:31:00 AM
From: Joe King	Read Replies (1) \| Respond to of 1706

Company Press Release S&P Lwrs Royal Oak Mines' CCR to CC Rmns on Watch Neg NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 3/18/98-- Standard & Poor's today lowered its corporate credit rating on Royal Oak Mines Inc. [AMEX:RYO - news] to double-'C' from single-'B', and its senior subordinated note rating to single-'C' from triple-'C'-plus following the company's announcement of a technical default on its privately placed senior secured debentures (unrated). The ratings remain on CreditWatch Negative. The company announced that it has exceeded the amount of trade payables over 90 days allowed under the covenants of its privately placed senior secured debentures, resulting in a technical default. The provisions of the indenture allow a 20-day cure period to enable the company to remedy this default. The company is evaluating its alternatives to determine the best course of action to remedy the default. Royal Oak Mines is a midsize North American gold producer in the midst of developing its Kemess gold-copper project located in north central British Columbia. The project, which is 92% complete, has experienced cost overruns. The company currently lacks the funds for completing the project. In addition, the price of gold on which the earnings and cash flow of the company depends, is at an 18-year low. Standard & Poor's will continue to monitor the situation closely. -- CreditWire ------------------------------------------------------------------------ Contact: Mary Lue S Bill, 416/202-6011 For more information on criteria or subscriptions: ratings.standardpoor.com Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page.