Molycorp rating cut at Moody's; -5.8% AH

|By:, SA News Editor

"The downgrade reflects continued weakness in rare earths pricing environment, ongoing negative free cash flows, weak liquidity and high leverage," says Moody's cutting Molycorp's (MCP) CFR rating to Caa2 from Caa1. "The [Mountain Pass] project's cost overruns left the company with absolute debt levels that may be unsustainable in a current price environment."

Shares -5.8% AH