Moody's upgrades Volcan

Moody's Investors Service said it upgraded the corporate family rating of Volcan Compania Minera SAA to Ba2 from Ba3, along with the rating of its senior unsecured notes due in February 2022 to Ba2 from Ba3.

The outlook is stable.

The upgrades reflect Volcan's improvements in operating and liquidity profile over the past few quarters, Moody's said.

The company increased the focus on profitability and cost reduction while investing in brownfield projects that will allow it to expand production and ore grades overtime, the agency said.

Moody's said it expects that base metals prices in 2019 will be sustained close to average levels seen in 2017 and 2018.

Combined with ongoing cost reductions, these factors will continue to support gradual de-leveraging and a strengthening credit profile, the agency said.

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