S&P trims Eldorado Gold

S&P said it lowered its ratings on Eldorado Gold Corp., including its long-term corporate credit rating to B+ from BB-. S&P also assigned its 3 recovery rating on the company's senior unsecured notes, which corresponds to meaningful (50%-70%; rounded to 65%) recovery in the event of a default, and a B+ issue-level rating (no notching from the corporate credit rating).

The outlook is stable.

“The downgrade primarily reflects our weaker view of Eldorado's business risk profile following a reassessment of its competitive position,” said S&P credit analyst Abid Maredia said in a news release.

“We believe the risks associated with the company's limited operating breadth will persist at least over the next two years amid a period of high capital spending on multiple growth projects.”

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