Moody’s rates Polyus Gold notes Ba1

Moody's Investors Service said it assigned a provisional Ba1 (LGD3) rating to Polyus Gold International Ltd.'s proposed $500 million senior unsecured notes.

The notes will be guaranteed by Polyus Gold's key operating subsidiary, JSC Gold-Mining Co. Polyus, which contributes more than 75% to the group's consolidated EBITDA and operating cash flow.

Proceeds will be primarily used to refinance the company's existing credit facilities.

The rating is at the same level as Polyus Gold's corporate family rating, which reflects Moody's assumption that the notes will rank pari passu with other unsecured and unsubordinated obligations of Polyus Gold's group, which is the only type of debt in the group's debt portfolio structure.

The agency expects issuance proceeds will be mostly used for early repayment of part of the group's existing debt maturing in 2018-2019, so the new notes placement will not increase Polyus Gold's leverage.

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