Moody's affirms Fairmount

Moody's Investors Service said it affirmed the B1 corporate family rating and B2 probability of default rating of Fairmount Minerals, Ltd.

Moody's affirmed the B1 (LGD3, 35%) rating on the company's amended and increased $1.075 billion senior secured credit facility that includes a $75 million revolver and a $1 billion senior secured term loan B.

The outlook is stable.

The ratings balance the company's revenue volatility, modest scale, limited product line and end-market diversification against its above average operating margins, high barriers to entry, large base of proven mineral reserves and moderate debt leverage, Moody's said.

The stable outlook presumes that the company will carefully balance its leverage and other credit metrics with its acquisition strategy, primarily focusing on modestly sized uck-in acquisitions that build upon its core strengths, the agency said.

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