Moody's rates Hochschild notes Ba1

Moody's Investors Service said it assigned a Ba1 corporate family rating to Hochschild Mining plc, along with a Ba1 rating to its proposed senior unsecured notes of up to $350 million due in 2020 or 2023 to be issued by Compania Minera Ares SAC, but fully and unconditionally guaranteed by Hochschild plc and its main subsidiaries.

The outlook is stable.

The rating reflects Hochschild's long history of stable financial performance, strong corporate governance standards and good silver cost position, which should help support the company's earnings and credit metrics at a lower metal price environment for gold and silver, said Soummo Mukherjee, a Moody's analyst.

Constraining the company's ratings are its limited size, concentration in two precious metals and susceptibility to the volatility of its prices, as well as significant exposure of production and cash flows to its San Jose mine in Argentina, Mukherjee said.

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