Moody's rates Barminco notes B1, Ba3

Moody's Investors Service said it assigned a provisional B1 corporate family rating to Barminco Holdings Pty Ltd.

At the same time, Moody's assigned a provisional B1 rating to the proposed $500 million of five-year senior unsecured notes due 2018 and a provisional Ba3 rating to the proposed $100 million three-year senior secured credit facility due 2016 of Barminco Finance Pty Ltd., the wholly owned financing subsidiary of Barminco.

The outlook is stable.

The proceeds of the transactions will be used to refinance existing debt, working capital requirements and general corporate purposes.

"Barminco's (P)B1 corporate family rating primarily reflects the company's high financial leverage and exposure to the cyclical and volatile minerals industry, which is currently facing significant headwinds" Moody's assistant vice president and analyst Matthew Moore said in a news release.

"The rating also reflects Barminco's moderate scale and concentrated revenue base, the capital intensive industry in which it operates and the need to continually replace and renew its contracts to sustain and grow revenues," Moore added in the release.

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