Recent Upgrades Bring A Shine Back To Leading Gold Producers

S&P Global Ratings recently took three positive rating actions in the gold sector: It upgraded Barrick Gold Corp. to 'BBB' from 'BBB-' and Kinross Gold Corp. to 'BBB-' from 'BB+', and revised its outlook on Goldcorp Inc. to stable from negative. These actions returned each company to a position not seen for more than two years and are consistent with our positive bias for the gold sector.

We now view leading gold producers as better positioned to manage the risks inherent in the industry, notably future price volatility, potential cost inflation and operating challenges. Much of this reflects the deleveraging and unit cost improvement by these issuers in the past few years. We expect debt will remain near or below current levels, which in turn should improve the companies' financial flexibility.

Key Takeaways

We recently took positive rating actions on leading gold producers Barrick Gold Corp., Kinross Gold Corp., and Goldcorp Inc.
These actions primarily reflected the companies' deleveraging and unit cost improvement that we expect will improve issuers' flexibility to manage the risks inherent in this industry.
Our outlook for the gold sector is favorable for at least the next 12 months.
Nevertheless, ratings upside will likely require more than just stronger gold prices.

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Recent Upgrades Bring A Shine Back To Leading Gold Producers

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