S&P rates Goldcorp notes BBB+

Standard & Poor's said it assigned a BBB+ rating to Goldcorp Inc.'s proposed senior unsecured notes offering for up to $1.5 billion.

The notes will rank equally with all of Goldcorp's existing and future unsecured and unsubordinated indebtedness.

The proceeds will be used to help repay the August 2014 maturity of the company's senior unsecured convertible notes outstanding, help fund its growth initiative and for working-capital requirements.

The agency also said it affirmed Goldcorp's BBB+ long-term corporate credit rating.

The ratings reflect the company's better-than-average cost profile and relatively low political risk of the company's mines, supported by its modest use of debt, S&P said.

These strengths are partially offset by the company's exposure to volatile metals prices, large growth-oriented capital expenditure plans and its high reliance on several key assets, the agency said.

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