Moody’s rates Iamgold notes B3

Moody's Investors Service said it assigned a B3 rating to Iamgold Corp.'s new $500 million guaranteed senior subordinated notes due 2025.

Proceeds will be used to fund the redemption of the $489 million outstanding of its 6¾% guaranteed senior subordinated notes due 2020.

The company's B2 corporate family rating, B2-PD probability of default rating and SGL-1 speculative grade liquidity rating remain unchanged.

The outlook remains positive.

Moody’s said the B2 corporate family rating is driven by the company's elevated geopolitical risks and dependence on its Rosebel gold mine in the Government of Suriname (B1 stable) and Essakane gold mine in Burkina Faso (unrated) for most of its cash flows, coupled with very good liquidity, low leverage and exposure to gold price volatility.

In addition, the rating reflects increasing rock hardness at both the Rosebel and Essakane mines, which could result in higher costs compared to 2016, as well as the execution risk of increasing production at its Westwood mine in Canada following the mining-based seismic event which derailed the mine's original 2015 ramp up, the agency explained.

© 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.