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Barrick Gold Corp. Ratings On CreditWatch Negative After NovaGold Takeover Bid Jul 06
Standard & Poors, July 2006
Abstract
TORONTO (Standard & Poor's) July 25, 2006--Standard & Poor's Ratings Services today said it placed its 'A-' long-term corporate credit and senior unsecured debt ratings on Barrick Gold Corp. on CreditWatch with negative implications after the company announced an unsolicited US$1.53 billion takeover of NovaGold Resources Inc. (unrated). The 'A-2' CP rating on Barrick is affirmed. The CreditWatch stems from the increased risk in Barrick's conservative financial profile, which is currently supported by large cash balances that contribute to low net debt leverage. 'The company has stated that it would fund the acquisition of NovaGold with cash and debt, which will weaken its funds flow to debt metrics,' said Standard & Poor's credit analyst Donald Marleau. The assets to be...
Companies mentioned in this report are: Barrick Gold Corp.
Action: On CreditWatch:Negative
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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