Moody’s revises Gold Fields to positive

Moody's Investors Service said it changed the outlook on Gold Fields Ltd. to positive from stable and affirmed the Ba1 corporate family rating and Ba1-PD probability of default ratings.

Concurrently, the agency changed the outlook to positive from stable and affirmed the Ba1 rating assigned to the $1 billion ($852 million outstanding) senior unsecured notes due Oct. 7, 2020, issued by Gold Fields Orogen Holding (BVI) Ltd., guaranteed by Gold Fields.

"The change in the outlook on the ratings to positive from stable reflects the track record of better than expected cost and production delivery at Gold Fields' South Deep mine which in Q2 2016 achieved its first free cash flow positive quarter since the mine was acquired in 2006," Moody's assistant vice president Douglas Rowlings said in a news release.

"Accelerated debt reduction assisted by a higher than anticipated gold price in 2016 will see credit metrics and liquidity strengthening significantly by year end with management achieving their leverage target of net debt/EBITDA below 1x."

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