Moody’s changes Minsur outlook to positive

Moody's Investors Service said it affirmed Minsur SA's Ba3 corporate family rating and the rating assigned to its $450 million senior unsecured notes due in 2024.

The outlook was changed to positive from negative.

Moody’s said the positive outlook reflects the improvement in Minsur's credit metrics throughout 2016, supported by the initiatives taken by the company to enhance its operational profile, such as the ore sorting plant in San Rafael and the flotation plant expansion in Pitinga, and Minsur's financial discipline regarding costs, capex and dividend distribution.

Accordingly, Minsur's EBITDA margins (incorporating Moody's standard adjustments) reached 43.3% in the third quarter of 2016, a significant improvement from the 13.7% margins observed in fourth quarter of 2015, while adjusted leverage (measured by total debt/EBITDA) declined to 3 times in LTM ended September 2016, from a peak of 4 times in LTM ended March 2016, the agency explained.

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