Fitch rates Gran Colombia B-

Fitch Ratings said it assigned a long-term foreign-currency issuer default rating of B- to Gran Colombia Gold Corp., along with a long-term local-currency issuer default rating of B- and senior secured notes rating of B- with recovery rating of RR4.

The outlook is stable.

The ratings result from its small scale of operations, historically weak financial profile, low mine life and lack of diversification, Fitch said.

The ratings are partially offset by the company's improving profitability and competitive all-in sustaining cost position relative to its peers, the agency said.

Fitch said it believes Gran Colombia will benefit over the next two years from higher mine output, which will dilute its production costs and reduce its risk to a stronger peso and weaker gold prices.

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