Moody's rates Barrick (PD) Australia notes Baa1

Moody's Investors Service said it assigned a Baa1 rating to Barrick (PD) Australia Finance Pty Ltd.'s senior unsecured notes due 2020 and 2039, totaling $1.25 billion. The notes are guaranteed by Barrick Gold Corp.

Proceeds from the notes will be used for general corporate purposes, primarily to refinance the residual obligations from the elimination of the hedge book.

At the same time, Moody's affirmed the existing Baa1 senior unsecured ratings of Barrick Gold Corp., Barrick International Bank Corp., Barrick North America Finance LLC, Barrick Gold Financeco LLC, Barrick Gold Finance Co., ABX Financing Co. and Placer Dome. All rated obligations not at the parent level are guaranteed by Barrick Gold Corp.

The outlook is stable.

Moody's said Barrick's Baa1 senior unsecured ratings reflect the strong operating cash flow capacity of the company, its moderate absolute level of debt and strong cash position (bolstered by the recent Silver Wheaton transaction to monetize a portion of its future silver production).

However, metal price volatility, operating and development cost pressures and ongoing reinvestment requirements to maintain its production profile are moderating considerations in the rating, the agency said.

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