Moody's may upgrade Goldcorp

Moody's Investors Service said it placed Goldcorp Inc.'s Baa3 long-term issuer rating and Baa3 senior unsecured rating under review for possible upgrade.

This follows news that the company is being acquired by Newmont Mining Corp. through a 100% stock transaction, Moody's said.

The acquisition is expected to close in the second quarter of 2019 subject to approvals, the agency said.

The review will consider the likelihood of the deal closing, Newmont's strategy for the combined companies and the financial and legal structure of the two companies, including Newmont's plans for Goldcorp's debt, Moody's explained.

The combined company will have the largest reserve and resource base among global gold mining companies with production expected to be 6- to 7-million ounces of gold annually, the agency said.

Goldcorp benefits from its large scale, good mine diversity, favorable geopolitical risk and moderate leverage, but is constrained by the execution risks of its plan to grow production and profitability, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.