Fitch puts Goldcorp on positive watch

Fitch Ratings said it placed Goldcorp Inc.'s long-term issuer default rating and senior unsecured revolver, term loan and note ratings on Rating Watch positive.

These actions follow news that Goldcorp and Newmont Mining have entered into a definitive agreement whereby Newmont will acquire Goldcorp in a stock-for-stock transaction, Fitch explained.

The positive watch reflects an expectation that the combined company will have a clear path toward de-leveraging to a total debt-to-EBITDA of less than 1.5x, Fitch said.

The ratings also will benefit from the combined company's size, scale, project pipeline, favorable operating jurisdictions and diversification, the agency said.

Upon closing, Fitch said it anticipates the combined company would be rated BBB+.

The agency said it expects to resolve the watch when the deal is completed in the second quarter of 2019.

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