Fitch rates Volcan notes BBB-

Fitch Ratings said it assigned a long-term issuer default rating of BBB- to Volcan Compania Minera SAA and a BBB- rating to its proposed senior notes of up to $600 million.

The outlook is stable.

Proceeds will be used to finance the company's capital expenditure program to 2015 alongside internal cash flows and for general corporate purposes.

The ratings reflect Volcan's diversified mining operations, strong historical track record of maintaining a conservative capital structure, strong cash flow generation and low cash cost of production, the agency said.

The company's operations are located in Peru (BBB/stable) which has vast mineral resources, the agency noted.

After the proposed note issuance, the company's total debt-to-EBITDA ratio will be about 1.0x at closing.

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