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RENO (MINEWEB) - Fitch Ratings Tuesday affirmed Goldcorp credit rating at ‘BBB' with a stable outlook, including$862.5 million in senior unsecured convertible notes and a $2billion senior unsecured revolving credit facility. The US$862.5 million private offering was completed in June 5,2009, with the notes due in 2014. At the time Goldcorp said itintended to use $330 million of the net proceeds to repay debtunder its revolving term credit facility with the balance of thenet proceeds to be used for "general corporate purposes, includingcapital expenditures. In a press release issued Tuesday, Fitch said, "Goldcorp's creditratings reflect its sizable long-lived reserves in areas ofrelatively low geopolitical risk, favorable cost position andstrong project pipeline as well as plans for substantialdevelopment spending over the medium term." "Goldcorp is committed to maintaining a conservative investmentgrade capital structure given its exposure to gold prices," Fitchnoted. "In weak gold markets, the company has the ability to deterdevelopment and exploration and focus on cash preservation." In her analysis, Fitch Senior Director Monica Bonar said Goldcorphas cash on hand of $1.4 billion as of March 31, 2012, and fullavailability under the company's $2 billion revolver due November2016. "Liquidity should remain adequate to support Goldcorp's largecapital spends," Fitch advised. "With capital expenditures in 2012expected to be $2.6 billion, Goldcorp could be free cash flownegative up to $1.3 billion in 2012 assuming average 2012 goldprices at $1,416/oz and the timing of spending. Going forward,operations are expected to return to positive free cash flow in2014 assuming gold prices of $1,200/oz from 2013." "Current operations are expected to provide 72% of operating cashflow for the period 2012 through 2016 reducing reliance ondevelopment properties," said Fitch. The ratings agency called Goldcorp's financial leverage "quitemodest" with a total debt of $862.5 million at 0.28xLTM March 31,2012 operating EBITDA of $3.1 billion. "The Stable Outlook reflects Fitch's expectation that totaldebt/EBITDA will not exceed 3.5 times (x) when borrowing is at itspeak and will generally be below 1.5x. Should internal cashgeneration fall behind expectations, Fitch expects expenditures tobe cut or be supported by new equity issuance or asset sales,"Fitch concluded. SUBSCRIBE to Mineweb.com's free daily newsletter now. I am an expert from bundy-tubes.com, while we provides the quality product, such as China Condenser Tube , China Compressor Tubes, Bundy Tubes,and more.
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