Fitch: Nord Gold notes BB-

Fitch Ratings said it assigned a final senior unsecured rating of BB- to Nord Gold NV's $500 million issue of 6 3/8% notes due May 2018.

The agency also assigned it a long-term foreign-currency issuer default rating of BB-, short-term foreign-currency issuer default rating of B, foreign-currency senior unsecured rating of BB-, long-term local-currency issuer default rating of BB-.

Nord Gold was spun-off from OAO Severstal in 2012.

The notes are unconditionally and irrevocably guaranteed by Societe Miniere de Dinguiraye (Guinea), JSC FIC Alel (Kazakhstan), Neryngri-Metallic LLC (Russia) and CJSC Mine Aprelkovo (Russia), which are operating companies of the group. The notes are also guaranteed by High River Gold Mines Ltd. (Canada), a holding company that owns the group's operating companies.

The company's gold reserves are well-diversified geographically and by number of mines, Fitch said.

The launch of the Bissa mine in Burkina Faso in January 2013 further enhanced the company's operational diversification, the agency said.

While Nord Gold does not have an excessive exposure to any of the four countries in which it operates, each of these jurisdictions is viewed as having higher country risk relative to mining operations, Fitch added.

© 2015 Prospect News.
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