Moody's puts Newmont USA on review for upgrade

Moody's Investors Service said it placed Newmont USA Ltd.'s Baa3 senior unsecured rating under review for possible upgrade, including the company's 8.625% notes due May 2011 and unit Santa Fe Pacific Gold Corp.'s 8.375% notes due 2005.

The review is prompted by the significant de-leveraging of Newmont USA and its parent, Newmont Mining Corp., over the past two years, by the improved operating performance of both companies over this period and by the substantial improvement in coverage ratios, Moody's said.

The review also considers the expanded geographic and operating base of Newmont, the development prospects for both Newmont USA and Newmont Mining Corp., and the success of Newmont Mining Corp. in integrating operating assets and substantially completing the restructuring of various financial instruments following its merger with Normandy Mining and Franco Nevada.

The review will focus on Newmont's ability to successfully complete identified development projects, which are anticipated to be financed substantially with internally generated funds. The review will also consider the company's ability to continue to focus on debt reduction as it undertakes a substantial maintenance and development capital expenditure program while fully leveraged to the price of gold.

Newmont Mining Corp. has significant excess liquidity following the completion of a $1 billion equity issuance earlier this month; has $750 million of unused bank credit facilities available; and has no significant debt maturities prior to 2011.

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