Metals and mining companies will persist to fight in 2009 amid a potentially stretched drop in stipulate and falling metal prices.

The ratings agency said demand has dropped harshly owing to rigid credit and the depression, consequential in the entire supply chain trying to preserve cash by reducing inventory, orders and production levels.

Prices have go down for aluminum, copper, zinc, nickel and steel amid lower demand, and most of the prices have however to stabilize, according to S&P. Only coal and gold prices stay somewhat strong.

Of the 43 U.S. metals and mining companies rated by S&P, 13 have negative credit outlooks or their credit ratings are under evaluation for a downgrade, whereas only four have positive outlooks or are being measured for an upgrade.

Still, many in the trade were in a strong liquidity position at the opening of the downturn, after some years of excellent earnings and cash flow, producing conquering acquisitions, expansions and adequate liquidity to provide a cushion through the current economic slowdown.

S&P still warned that additional price refuse and low commodity prices for an extended period might lead to lower ratings across the sector.

Some companies, as well as Nucor Corp. (NUE) and Freeport-McMoRan Copper & Gold Inc. (FCX) are likely to be constant if they can amend operations to new pricing and demand levels, as the companies are better-capitalized than most.

S&P said key factors affect metal and mining companies in the next few months comprise a stable economic climate to free up the credit markets, government stimulus packages, growth in China and lower costs and possibility of the Detroit Three automakers, which use about 30% of total steel sold in the U.S.