S&P cuts Allied Nevada notes, view negative

Standard & Poor's said it revised its rating outlook on Allied Nevada Gold Corp. to negative from stable.

At the same time, S&P affirmed the B corporate credit rating on the company and lowered its issue-level rating on the company's unsecured notes to B- from B in conjunction with the revision of the recovery rating to 5 from 3.

The agency said the outlook revision reflect Allied Nevada's limited flexibility to absorb production shortfalls in 2013 given a recent drop in the price of gold. Leverage could exceed 5x EBITDA and liquidity could become constrained if the company misses its production targets or if gold prices drop further, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.