Fitch upgrades Gran Colombia

Fitch Ratings said it upgraded Gran Colombia Gold Corp.'s issuer default rating to B from B-with a stable outlook.

The upgrades reflect the company's successful refinancing of its 2020 and 2024 debentures through its $98 million senior secured gold-linked notes, the settlement of its 2018 debentures with shares and an enhanced mine plan at its Segovia operations focused on cost reductions and high grade ore bodies, which are driving cash flow generation, Fitch said.

The removal of the sinking funds has allowed the company to improve its liquidity position, which enabled the company to invest in its business and conduct drilling programs in its Segovia operations in order to optimize its mining plan, the agency said.

Gran Colombia remains a highly speculative credit and is vulnerable to weak gold prices and a stronger Colombian peso, although some margin of safety remains, Fitch said.

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