Moody’s: Barminco to positive

Moody's Investors Service said it affirmed Barminco Holdings Pty Ltd.'s corporate family rating at B2 and changed the outlook to positive from negative.

The agency said it affirmed the B2 senior unsecured rating of Barminco Finance Pty Ltd.

The outlook is positive.

The positive outlook reflects the company's improved credit profile, underpinned by reduced debt levels and higher earnings from new contract wins, Moody’s said.

While the operating environment for mining services remains competitive and challenging, Moody's said it estimates Barminco generated strong cash flows for the 12 months ended 30 June 2016 (fiscal 2016).

The company also reduced its refinancing risk by lowering its debt, which brings the amount it needs to refinance by May 2018 to $306 million, the agency said.

The ratings also benefit from the company’s strong position and franchise in underground hard rock mining, Moody’s said.

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