Moody's lowers St. Barbara

Moody's Investors Service said it downgraded the corporate family rating and senior secured rating of St. Barbara Ltd. to Caa1 from B3.

The outlook is negative.

"The downgrade of St. Barbara's rating largely reflects our expectation that the company's liquidity will face significant pressure until the company begins to generate free cash flow from its assets in the Pacific region," Moody's analyst Saranga Ranasinghe said in a news release.

"Slower than expected ramp up of production, high unit cash costs and significant amounts of capital expenditure particularly related to its Pacific region assets, have eroded the liquidity buffer the company had following its debt raising in April 2013."

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