S&P puts Endeavour Mining on watch

S&P said it placed its BB- ratings on Endeavour Mining plc and its debt on CreditWatch with negative implications.

The negative watch follows the Jan. 23 coup in Burkina Faso, where Endeavour has about half its operations. So far, the company has not suffered any material disruptions.

“We understand that Endeavour has taken several mitigating actions, including regarding cash management and contingency planning for potential raw material shortages. That said, without any progress on the political scene, different scenarios can be envisaged for Endeavour's operations, ranging from no impact to a suspension of one or more of the mines for an extended period. However, in our view, none of these scenarios would lead to pressure on Endeavour's liquidity position or a default over the short term,” S&P said in a press release.

The negative watch indicates a possible downgrade if the situation in Burkina Faso hurts Endeavour’s operational and financial performance, the agency said.

© 2015 Prospect News.
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