Fitch assigns Endeavour, notes BB

Fitch Ratings said it assigned Endeavour Mining plc a first-time long-term issuer default rating of BB with a stable outlook. The agency also gave Endeavour's upcoming notes an expected senior unsecured rating of BB with an RR4 recovery rating.

“Endeavour's BB long-term IDR balances strong financial and business profiles and a weak operating environment, reflecting the group's focus on West African countries with diversification across Senegal, Burkina Faso and Cote d'Ivoire. The applicable country ceiling is Cote d'Ivoire's (BB). Endeavour's business and financial profile otherwise compares favorably with higher rated peers, given meaningful scale of production at 1.4 million-1.5 million ounces (oz) per year, a favorable position within the second quartile of the global cost curve, a reserve life of 12 years and a conservative financial policy of maintaining net debt/EBITDA below 0.5x through the cycle,” Fitch said in a press release.

Endeavour also plans to obtain a $500 million revolver with four-year tenor. The company’s next maturity is a $330 million convertible bond due 2023.

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