DBRS rates Barrick notes A

DBRS said it assigned a provisional rating of A, which is under review with negative implications, to the $700 million of senior notes due May 2014 and $1.1 billion of senior notes due May 2016 to be issued by Barrick Gold Corp. and the $1.35 billion of senior notes due May 2021 and $850 million of senior notes due May 2041 to be issued by Barrick North America Finance LLC.

The proceeds will be used to acquire Equinox Minerals Ltd. or for general corporate purposes.

DBRS said it placed the senior debt ratings of Barrick and its subsidiaries under review with negative implications on April 25, following the company's announcement that it will make a C$7.3 billion, all-cash offer for copper producer Equinox.

DBRS intends to resolve the review status of the new notes to be issued by Barrick and Barrick NA Finance and Barrick's other long-term ratings once it can clarify the ultimate cost of the Equinox acquisition, the potential long-term value of the deal to Barrick, the financing structure of the deal and the impact of a successful transaction on Barrick's business profile and financial metrics, the agency added.

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