Moody’s lifts Hochschild, notes to Ba3

Moody's Investors Service said it upgraded Hochschild Mining plc’s corporate family rating and its senior unsecured notes due in 2021 issued by Compania Minera Ares SAC to Ba3 from B1.

The notes are fully and unconditionally guaranteed by Hochschild and its main subsidiaries.

The outlook was changed to stable from positive.

Moody’s said the upgrade to Ba3 incorporates Hochschild's enhanced operating performance, characterized by higher production volumes, a balanced sales mix (silver and gold contributing to 50% of sales volumes) and a lighter cost structure, which will promote a sustained strengthening of its financial and liquidity profiles.

The upgrade also reflects the agency expectations for an ongoing and steep deleveraging trend to under 1 time by year-end 2018, supported by the expectation of continued reduction in absolute debt levels, as observed in the past year.

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