Moody's rates Goldcorp notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to Goldcorp Inc.'s $1 billion senior unsecured notes and a provisional Baa2 rating to the company's related shelf prospectus.

Proceeds will be used to refinance Goldcorp's existing $863 million convertible notes due August 2014 and reduce outstanding amounts under its revolver.

The transaction is neutral to Goldcorp's leverage and consequently has no impact on its existing Baa2 senior unsecured ratings or stable outlook.

Moody's said Goldcorp's Baa2 rating is driven by its significant exposure to gold price volatility, strong reserve base, good mine and geographic diversity, favorable cost position and relatively low overall political exposure. The rating also positively incorporates Goldcorp's recent decision to walk away from its unsolicited bid for Osisko Mining Corp. when competitors made a higher offer, the agency said.

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